Our team at SOMO are here to teach you all the tips and tricks for finding the best house and land package for you. Our Property Advisors know the ins and outs of being a first home buyer, so if you’re seriously considering the next step, read on for what you need to know and look out for when considering a house and land package.
To begin, let’s start with the basics. What exactly is a house and land package, and, how do they work?
The term’ house and land package’ is a deal that includes a block of land plus a home, newly constructed, on top of it. Within this model, there are two types of house and land packages to choose from – ‘off the plan’ and ‘turnkey’.
The ‘off the plan’ package means you can pick your block of land and its location, plus you also choose the design from a range of selected suitable design options. It is basically the ‘DIY’ option of the two. The second style of package is ‘turnkey’, which involves purchasing a block of land with a new house already constructed on it, but with this option you are set up for an instant move-in, meaning all the decisions have already been made and you merely ‘turn-the-key’ and step inside your new home.
One of the main things to consider when selecting a house and land package is the way you choose to finance your new project. There are two stages to the financing process when you decide on your house and land package. First, you must take out a mortgage for the land, then a construction loan for the building component. The construction loan will be taken out in stages, so you only have to pay interest on the sum needed for the varying stages of the development.
We recommend getting a cost estimate, from your company or builder, that includes details of all aspects of the housing development. You want to find a package and deal that not only offers good value for money, but that suits both your needs and your budget. It is essential to be able to keep track of where the money is going, when each stage is happening, and when the funds will be taken out. If there are add-ons you desire, get a quote for this and then weigh up if it will fit into your budget – things tend to add up very quickly!
Another critical consideration when researching house and land packages is staying firm on your budget, expectations, and non-negotiables. When searching for house and land packages or discussing with Property Advisors, make your voice heard and do not sway if it’s not what you want, at the end of the day you’re the one who’s going to be living there. Take the time to have a good look through all of the design options available for your chosen house and land package, making sure everything fits your preferences.
Next up, do your research into the suburbs you are looking at and know the area well. Go for a visit and see for yourself if it’s as good in real life as it is on paper. It is important to also factor in the amenities you want close by. These may include things like the distance to the beach or city, or the public transport options in the area. It is also significant to factor these in for potential resale value, if that is something you plan on doing down the track. You can head to our ‘suburb profiles’ section on our website for a more in-depth look into what our varying Perth suburbs have to offer.
We also recommend you do the research into the building company you are thinking of signing with, what customers have said about the process and the kind of workmanship and quality of the materials they are using. Look through reviews of the companies who will be developing the different features of your home and make sure they are the right fit for you. Be clear on what you want, and what kind of materials you expect to be used.
And our final tip, stay as involved as possible in the whole process. If you take a step back and wait for the finished product, you may be disappointed if something is not exactly what you pictured. Being involved in the process means you can speak up early in the piece if something doesn’t meet the mark on your expectations and rectify immediately. Visit the site as frequently as you can and stay in contact with the developers – be present every step of the way.
If you have any more questions about house and land packages, explore our website for more information on what we offer or the answers to some more commonly asked questions. If you are ready to take the next step and are ready to buy or finance your first home, drop us a line on (08) 9202 9292 and chat to one of our experienced Property Advisors. Let us get your development started!