6 Key Factors to Consider When Buying a New House and Land Package

Whether you’re a first-time buyer or are looking to upgrade to a larger property, a house and land package can be an option that gives you both a new home and a piece of land in one go.

However, it’s essential to understand all the ins and outs of house and land packages before you decide to move ahead.

Let’s take a look at the key factors to consider when deciding if this option is right for you.

What does it mean to buy a house and land package?

A house and land package involves the purchase of both a piece of land and a newly constructed home as a single package deal from a property developer or builder.

Typically, this type of package involves selecting a block of land within a development or subdivision, and then choosing your house design from a range of options. 

Once you’ve selected your land and house design, the builder will usually get to work constructing your home on the chosen block of land, based on the specifications and timeframe you’ve agreed upon.

What to consider when buying a house and land package

1. Where to buy

Before you start thinking about the finer details of your ideal house and land package, you’ll want to narrow down your search to a specific suburb or suburbs that can offer the lifestyle you’re after.

Think about proximity and access to amenities and services that may be important to you - such as schools, shops, public transport, and health facilities - as well as features of the neighbourhood like safety, community atmosphere, and the potential for future growth.

It’s also a good idea to research local zoning regulations and council plans that could impact your property's value and lifestyle.

2. Your price range

Having a clear idea of your budget and how much you can borrow will help you focus your search on house and land packages that fall within your price range.

As well as the upfront costs of buying a property, it’s important to be aware of the many other expenses involved in home ownership, such as stamp duty, legal fees, and building inspections.

You’ll also need to factor in ongoing costs like mortgage repayments, insurance, rates, and maintenance to ensure you can comfortably afford your new home.

3. The builder’s reputation

When buying a new house or land package, the reputation and experience of the builder are crucial. 

Do your research into the builder’s track record, read reviews from previous clients, and look at their portfolio of past projects to assess their quality, service, and reliability.

Be sure to opt for builders who are licensed, insured, and accredited by industry bodies.

4. The house design and floor plan

When it comes to choosing a house design, you’ll want to think about your unique lifestyle, preferences, and specific living arrangements.

Consider factors such as how many bedrooms and bathrooms you’d like, the type of floorplan and layout that will suit you and your family, the functionality of the space, and flexibility for future renovations or extensions.

Pay attention to aspects like natural light, storage space, and indoor-outdoor flow to create a comfortable and practical living environment.

5. Land size and orientation

Land size and orientation are both key considerations of your house and land package selection.

Before purchasing, evaluate factors such as the size, shape, slope, and aspect of the land so you can decide how suitable it will be for you and your family.

For example, a larger block can offer more space for outdoor living and landscaping, while a well-oriented block (such as a north-facing plot) can help to maximise natural light and energy efficiency in your home.

6. Contract terms and inclusions

Before you sign any contracts, make sure you’ve carefully reviewed and understood the contract terms and inclusions.

Pay close attention to details such as deposit requirements, progress payments, timelines, and warranties.

Be sure to clarify exactly what’s included in the package and whether you have access to any extras such as landscaping or fittings.

With careful research and a clear understanding of what’s involved in this type of property purchase, buying a house and land package can be an effective way to have your very own piece of land with a brand new house to call home.

Looking to learn more about the home-buying process? Check out our series of buy a home articles. 

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

Unloan is a division of Commonwealth Bank of Australia

‍Applications are subject to credit approval; satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000.

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* Other third-party fees may apply. Government charges may apply. Your other lender may charge an exit fee when refinancing.

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