Usually, when one wants to have a house of their own, they’d have to purchase land and start from there.
This would typically cost quite a bit, not to mention time-consuming.
Nevertheless, if you want to get a house that suits your taste, such a tedious process is deemed necessary by many, but is it really?
Contrary to common belief, there’s a way to skip through all those steps and acquire a house you like from the get-go, and that would be through house and land packages.
What Are House and Land Packages?
As previously said, the way you go about building a house is by buying a piece of land and hiring workers to construct your soon-to-be home.
House and land packages, on the other hand, include those two components in one bundle.
Simply put, you can pay a fixed price for the entire project, although the contracts will naturally be separate.
Furthermore, the developers or the individuals offering the package may also allow you, the buyer, to personalize how the house would look like.
Upon choosing a package, such as any of the affordable house and land packages in the greater Perth region, the developers would require you to place a deposit.
This is often around 10% of the total price, and you’ll pay the rest once construction is done.
Are House and Land Packages Cheaper?
While it’s normal to assume that house and land packages would be costlier than usual, they’re actually more affordable than the alternative most of the time because you’re combining two purchases into one.
Think of it like how you can sometimes get a discount when you buy multiple items at a time instead of one by one.
Furthermore, since the house will take time to be built, you’ll have more time to save up for the project’s total cost, although you still need to provide a deposit.
How Does One Finance House and Land Packages?
One of the main differences between buying house and land packages and buying established homes is how you finance each of them.
When purchasing an already built house, you only have to take out a regular mortgage loan.
On the other hand, if you want to finance a house and land package, you need to take out two loans: a regular mortgage loan and a construction loan.
The latter is a must since you’re going to hire and pay workers to build your home.
Can You Negotiate the Price of House and Land Packages?
Since it’s different from what you’re used to, you’re probably wondering if it’s possible to negotiate the price of house and land packages, just like what you would do with land purchases.
Fortunately, yes, you can negotiate the terms. In fact, you have higher chance of success with this option when it comes to lowering the price.
For starters, if you want to buy an already built house, you can only negotiate with the seller, so you have just one shot at getting a better deal.
On the other hand, if you intend to buy a house and land package, you can negotiate with the builder as well as the developer, which gives you two chances.
How Do You Find House and Land Packages?
Selling house and land packages is a lucrative business, but it’s important to note that these packages often cater to the needs of a specific group, particularly individuals who are more likely to look for a house.
As such, you’ll often find house and land package offers in golfing estates, eco villages, and retirement homes.
You can also find offers in new subdivisions since these places are a hotspot for first-time home buyers.
And as you may have already discovered in the previous sections, you can also find house and land packages online, although the paperwork usually needs to be settled in person.
Are There Hidden Charges in These Packages?
You’re probably already aware that people selling a home may intentionally hide some charges to make the offer look appealing when, in fact, it’s not.
Unfortunately, house and land packages are not exempt from such schemes. Builders may try omitting a few details in the offer, such as garaging, fencing, landscaping, and the like.
Doing so allows them to show you a more favorable price, but in reality, you’d have to budget for those additional services as well.
On that note, it’s best to ask them outright what’s included in the package.
Considering that you’re reading this guide, you’re probably new to the concept of house and land packages.
While it’s distinct from the usual route of acquiring land prior to having a house constructed, it’s not that different.
Perhaps the main difference between the two options is how you finance the project, but if you already have some experience in that matter, buying house and land packages should be a piece of cake.