What You Need to Ask When Buying a House and Land Package
Did you know that buying a new house and land package generally represents significantly better value than buying an existing home in the same area?
There are numerous benefits to first homebuyers house and land packages, including:
- You’re covered by a new-build warranty
- They’re more affordable and better value for money
- Pricing is upfront and you know exactly what you’ll pay
- First homebuyers can take advantage of the First Home Owners grant
- You can choose the best new home design for your current and future lifestyle.
These are all great benefits that make first home owners house and land packages ideal.
However, it’s important to understand the buying and building process and what’s involved, not to mention getting the ‘must-have’ and ‘nice-to-have’ home design ratio just right, picking the perfect location and choosing the right home builder.
Along with those important considerations, here are a few of the most important questions to ask when exploring your home and land package options.
What Do I Need Financially?
Buying a house and land package is similar to purchasing off-plan or an existing home in that the more deposit you save, the better. Generally, 20% of the total purchase price is ideal as this enables you to avoid paying Private Mortgage Insurance (PMI), saving you thousands.
If you don’t have that much money saved, most lenders will approve a mortgage for a house and land package with 5-10% of the purchase price. You may also be eligible for the First Home Loan Deposit Scheme, which enables you to borrow with a deposit of just 5%. Talk to our specialists at MyChoice Home Loans for an assessment of your eligibility.
What’s Included in the Cost?
All homebuilders and house and land packages differ, so it’s essential to find out exactly what is and isn’t included. This is especially important for first homebuyers.
‘Standard inclusions’ and ‘additional inclusions’ are important points to clarify with the homebuilder. Depending on the package, you may find that interior and exterior elements, including the driveway, fencing and landscaping, are extra. With a McDonald Jones House & Land Package these elements are included.
It’s also important to understand that taxes, stamp duty and conveyancing aren’t included in the deal, no matter how generous the standard inclusions may be. This applies to all house and land packages in Australia, however, first homebuyers are exempt from stamp duty.
How Long Does the Process Take?
The time it takes from signing the paperwork to getting the keys to your new home depends on whether you’re buying a house and land package with a ready-constructed home or one that’s yet to be built. If buying a Complete by McDonald Jones House & Land Package the process could take a as little as a few weeks or it could be as long as six months if you want complete control over the facade and design features.
What Incentives Are Available?
The house and land packages in Sydney for first homebuyers offer several financial incentives. These include the First Home Owners grant and exemption from stamp duty, which make a significant financial contribution to the house and land package of your dreams.