House and Land Packages - Selecting The Right Package

For most people, buying a new home is probably the biggest and most important investment they would ever make in their lives. That is why it is important to ensure that you get the best deal on the property since you are likely to own it for the rest of your life. The market would always have a number of ready made houses waiting for buyers. But these homes can be very costly and unsuitable for some prospective homeowners. The location and design of the homes may also not be ideal for everyone. Fortunately, it is possible for you to buy a block of land on which you will have a suitable house built on. These packages, commonly known as house and land packages are commonly offered in emerging residential areas and estates. The arrangement gives you the freedom to choose one from several house plans designed to suit block.

The location of the land is the most important thing you have to consider when initially considering this package. Since these packages are common in new estates, you may be a little restricted in terms of the range of location choices. However, you should always try to find a location that suits your lifestyle. If the area is not yet fully developed as is often the case, make inquiries about planned future developments in the area to ensure that you will be able to cope with any long term changes. Try not to move too far from family and friends and if you have a young family, it would probably be a good idea to purchase a block of land situated near childcare facilities and schools. Depending on whether you have enough cars for your family or not, you should put the areas access to public transport into consideration.

Check the developer's reputation
Home and land packages are commonly offered by real estate developers and it is important for you to research the developer's track record before committing yourself. Some of the things to look out for are:
i) How long have they been in this business?
ii) How many homes have they completed and sold? The developer has to be extremely reputable with a track record of completing projects within schedule. Like any other professional organization, check to ensure that they are licensed and employ employed qualified professionals in the construction and real estate industry.

Display sites
Reputable property developers have display houses that they invite potential homeowners to tour and see how their own finished houses will look and feel. Check out things such as the quality of finishes and construction materials, the size of the bedrooms, the design of the kitchen, etc. You may probably like to make a few modifications to the displayed home (e.g. adding a deck, a foyer, having higher ceilings etc.).

Select right package
There are two types of home and land packages. The first involves purchasing the land before the house is constructed. The second involves purchasing a fully developed home and the land one which it is built from a developer.

In case you decide to start by buying the land; you will be required to make a ten percent deposit on land. You will settle the rest of the land payment after construction begins. During the construction phase, you will be required to deposit regular payments. The main advantage of this package is that you will only be required to pay stamp duty for the value of undeveloped property.

If you opt for the second option; you will be required to make a 5 percent deposit of the value of both the land and the construction cost before construction begins. You will not have to make any progress payments, but you will rather have to make the full payment once it is fully constructed. It can however be a little more expensive because you will be required to pay stamp duty for both the land and the house.