The advantages and disadvantages of buying home and land packages

Practical, simple, and cost-effective sound like a good deal when it comes to buying property. That’s probably why house-and-land packages are so popular, particularly with families and first home buyers. But if you’re more attracted to custom features, character, and a bigger garden, buying an established home or building independently is a better bet.

Most house and land packages in Sydney offer a wide range of options for property purchase. You may ask why a house and land package is better than a ‘ready to buy the property? Below are a few of the benefits you get when you invest in a house and land package.

 

What is a home and land package?

 

Home and land packages are new properties sold off the plan, with a range of customizable home designs to choose from. These properties are usually situated in land estates, where property developers purchase land released by the government and set up infrastructure and facilities to create a new community.

 

Simple, Streamlined Process

 

Perhaps the biggest advantage of purchasing house and land packages for investors is that it is going to make the process of building a new custom home a lot simpler. This is because you do not need to look for a block of land first and then find the right builder for the job. Instead, you are able to tick both of these boxes off at once and you will have a point of contact to help you through the entire process.

 

It is worth pointing out that you are still going to have two contracts, i.e. you will have a construction contract and a land contract. Nevertheless, the contracts will be with the same vendor, which streamlines the process. It is also going to be a lot easier for you to navigate the council approval process, which will be in place in a lot of cases.

 

Upfront and Clear Pricing

What you see is what you get. Most house and land packages have basic home inclusions already listed in their contract. This gives you a transparent idea about what you are paying for and prevents you from receiving any additional costs on the home after you've put down your deposit. 

 

Affordable

The reason why many people decide to purchase houses and land packages is because of the amount of money it saves. House and land packages avoid many of the additional costs such as stamp duty and additional site costs are already included in the initial base price. The loan process is a little different, however, we have a finance team here at Domaine that can help you with that!

Our latest Home and Land Packages

Home & Land I 4 🛏 2 🛁 1 🚘
Rosemeadow, NSW 2560

 

 

Fixed Price Home & Land | 4 🛏 2 🛁 2 🚘
Newbrook Estate, Airds.

 

 

Home & Land | 4 🛏 2 🛁 2 🚘| 372 SQM
Hillcroft Estate, Claymore.

 

Investor benefits

Because a house and land package is new, you’ll have a warranty if there are any problems.  It will be easier to lease and likely to have few or no maintenance outlays.  Plus, you can claim the maximum deprecation allowance on your tax return as new properties depreciate faster than existing properties.

 

Newly Developed Areas

In NSW you'll find that most house and land packages are offered in new developing areas and can be purchased in new estates. This usually guarantees that the sites offered are all viable to build on and are likely to build its equity making it a worthy investment in the future. You’ll have to be quick though, many buyers know this and tend to occupy the packages as soon as they are released. 

 

You could be eligible for grants or deductions

When it comes to purchasing a house and land package, some buyers may be able to benefit from First Home Owner Grant and stamp duty concessions.

In New South Wales, you’ll only pay stamp duty on the land portion. Eligible first homeowners buying a vacant block of residential land will pay no stamp duty on vacant land valued up to $350,000 and will receive concessions on stamp duty for vacant land valued between $350,000 and $450,000.

The government also provides a $10,000 First Home Owners Grant for building a new home that is up to $750,000 combined land and building value. Investors may also be able to claim a tax deduction as newly built properties depreciate at a faster rate than old dwellings.

Given the NSW Government’s commitment to improving housing affordability across the state, buying a house and land package is a great way for First Home Buyers to enter the property market, or for investors to purchase in rapidly growing regions.

 

Drawbacks Of House And Land Packages

Now that you know all about the many benefits that are associated with house and land packages, it is important to consider some of the cons.

Location


While house and land packages are often situated in outer suburbs where land is more readily available, this can be a benefit for those seeking a quieter, more spacious living environment. If you work in the city, it's important to consider commute times, but with the right research, you can find areas with excellent transport links or remote work options, minimizing the impact on your daily routine.


Uncertainty



Building a new home naturally comes with some uncertainty, but this can be mitigated through thorough research. By investigating the quality of fixtures and fittings, analyzing surrounding properties and facilities, and studying the area's historical and projected capital growth, you can make a well-informed decision and feel confident about your investment.


Hidden Charges



To avoid unexpected costs, it's crucial to have clear communication with the developer or builder about what is included in the package. Ask detailed questions upfront about items like landscaping and other features seen in display units. Being proactive in this regard ensures you are well-prepared and can avoid surprises later on.


Time



Although a house and land package may require some time investment for making decisions about the property, this allows you to personalize your home to your liking. Consider it an opportunity to tailor the details, such as kitchen lighting, ceiling heights, and color schemes, to create your ideal living space.


Land Size



While some new house and land packages may offer smaller lot sizes, there are still plenty of options available to suit your needs. If you require a larger frontage or space for a boat or trailer, conducting thorough research will help you find the perfect block that meets your requirements. Being clear about your priorities from the start ensures you find a property that aligns with your lifestyle.

 

The Bottom Line

 

In conclusion, investment in a house and land package might be a safe bet for those who want to start their financial portfolio. We recommend that you continue research on this topic and we wish you complete success on your new investment in a house and land package.

Note: This is not a financial advice

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