What You Need to Ask Before Buying a House and Land Package

Buying a house and land package can be an exciting opportunity to build your dream home in a location that suits your lifestyle. 

However, it’s important to be aware that this type of property purchase comes with its own set of considerations - and to make a smart choice for your investment, you’ll need to get as much information as possible before making a decision.

To help you avoid any potential pitfalls, here are seven questions to ask when buying a house and land package.

1. What does my package include?

Every house and land package will feature different inclusions, so it’s crucial to clarify exactly what’s included in your specific package.

The purchase price may include the cost of the land, the construction of the house, and any additional features or upgrades.

Be sure to ask about extra inclusions such as fittings, fixtures, and finishes, as well as any optional extras you can add - this will ensure you know what you’re getting and what else you may need to budget for.

2. How much do I need to pay upfront?

When you buy a house and land package, you’ll need to pay an upfront deposit to secure the property and land.

Deposits for house and land packages will generally range from 5% to 10% of the total purchase price, so find out what the requirements are for your chosen package.

Understanding the deposit requirements will help you plan your finances and ensure you have the necessary funds available.

3. What happens if things don’t go to plan?

As house and land packages come with particular guarantees and warranties provided by the builder or developer, it’s important to understand what you’re covered for in your contract terms.

This may include warranties for structural defects and the quality of workmanship and materials, as well as guarantees for completion of construction within a specified timeframe.

Knowing what you’re protected against can give you added peace of mind that you’re covered should the worst-case scenario end up happening.

4. What are the ongoing costs?

Any type of property purchase will involve upfront costs in addition to ongoing expenses that you’ll need to allow for going forward.

These ongoing costs can include things like mortgage repayments, council rates, utilities, insurance, and maintenance.

Make sure you also ask for details of any ongoing fees or charges associated with living in the development, such as strata or body corporate fees for shared facilities and amenities.

5. How much can I customise my new home?

One of the benefits of buying a house and land package is the flexibility to customise your home design to suit your style preferences and lifestyle needs.

Many builders will let you choose from a range of house designs and floor plans, as well as give you options for elements such as fixtures and fittings.

Find out what you’ll be able to change and customise, as well as whether you can upgrade from your standard package inclusions to create a more personalised home environment.

6. Does the developer have a good reputation?

When opting for a house and land package, it’s essential to do your research on the developer’s background and reputation before committing to a purchase.

Look for developers who have a demonstrated track record of successful projects, with a proven history of being reliable and credible within the industry.

Seek testimonials from previous clients and look into the financial stability of the developer to ensure they are reputable and trustworthy.

7. When can I move in?

A key consideration when buying a house and land package is the fact you’ll need to wait for the property to be constructed before you can move in.

Find out the expected construction timeline for the house and land package, including the time it will take to complete the house construction, as well as any additional time required for site preparation and landscaping.

Knowing the anticipated timeframe will allow you to plan your move - but it’s also important to be prepared for potential delays due to unforeseen circumstances.

When buying a house and land package, asking the right questions can help you make an informed decision and be ready for the journey ahead. Armed with all the information you need, you can look forward to moving into your new home with complete peace of mind.

Keen to learn more about the home-buying process? Check out our other articles and stay in the know about all things home loans.

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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.

‍Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

‍There are no fees from Unloan. However, there are some mandatory Government costs depending on your state when switching your home loan. For convenience, Unloan adds this amount to the loan balance on settlement.

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