A house and land package is a term used by a housing development that includes both a new home and the land on which it’s built. Housing developers often have multiple different sized lots, as well as various home designs to fit different price brackets.
If you are considering purchasing your first home, a house and land package may be the best way to start. House and land packages in Clyde North are an option to be considered by a first-time investor, as well as those who have dreamed of owning a home. Competitive prices, tax savings, and the chance to customize the look of your home are just some of the advantages of house and land packages, but read this guide to learn even more!
Off The Plan vs. Turnkey
Two types of house and land packages are available – off the plan and turnkey. Off the plan is when you purchase the land and commit to buying a property that is yet to be built. The other option is a “turnkey” package, where the home is already constructed on the land. This means it is ready to be moved into and has been fully constructed with flooring, fitted kitchens, up-to-date bathrooms, and sometimes even the landscaping and gardens.
When buying off the plan, you purchase the land and then select a builder and home design. Some things are included in this design, such as a fully fitted kitchen and bathroom, windows and doors, tiles, fans, stairs, built-in robes, and electricity points. Driveways, landscaping, and fencing may cost extra. The off the plan home is a good option if you don’t need to move in immediately.
On the other hand, turnkey home is ready to be moved into at your convenience. A pre-built home is often a preference for those who want an investment that won’t require abundant changes in the future. It leaves you with no surprise costs, and the home and land are included. You will also know the time frame of the home that is being built. The turnkey property includes landscaping, gardens, fences, driveways gates, and more. As well as moving in sooner, you often have less stress in the process of designing your new home.
In an off the plan home, the buyer will have two contracts: One for the land and one for the building of the home. It is different from buying a traditional home. To protect yourself, asking the builder for a detailed breakdown of the costs and home features is a smart action.
On the other hand, a turnkey home will have one contract that will include the home and the land it is built upon.
A deposit of 10% of the value of the land and a 5% deposit on construction will be needed for the home loan. A turnkey property might only require a 5% deposit.
First Home Owners Grant and Stamp Duty
House and land packages can save you money when it comes to stamp duty. This is because duty is only paid on the value of the vacant land. It is not paid on the value of the home that will come later.
Also, first home buyers can take advantage of a range of state government incentives aimed at building or buying a new home. For example, a VIC first home buyer choosing a new build may be entitled to a first homeowner grant. As an example, in Victoria, first-time home buyers purchasing properties valued up to $750,000 are eligible for a $10,000 grant. Additionally, concessions are available on house and land packages for refurbished homes and house and land packages.
Nevertheless, there are eligibility requirements to get these first-home owner grants, so do your research to avoid surprises.
Now you know about the basics between two different types of house and land packages. Reaching out to property developers can give you more information on the package in which you have an interest. For example, you might want to visit New Bloom to see 20 sites with some of the best locations in Clyde North.