Nowadays, you can both own a house and land from the same developer or company. That’s what a house and land package is all about. It makes it easier for homebuyers to acquire a property. With such, keep reading this 2021 guide so you can get the best deal for your homeownership.
How A House And Land Package Works
A house and land package is simply a bundle that allows buyers to acquire both a chunk of land and a newly built home in one process. When buying in bulk, customers will typically sign two contracts. One is with the land developer for the land transfer, and another is with the contractor for the construction.
What’s even great about this is that most land developers have an approved construction partner that they work with. As such, you won’t have a hard time looking for contractors. This package is often what most consumers get when it comes to buying a property.
Two Kinds Of House And Land Bundle
House and land packages often come in two categories. One is when property developers receive the land from the government. Then, they can sell the land to buyers and have the same buyer pay for a construction loan. The second is often the most common one where the house is on the developer’s land. Once the buyer has purchased it, the developer will turn over the land including, the house built on it.
The house in this option already comes with a semi-furnished kitchen, flooring, and many others. Moreover, the price for the land and construction is nonnegotiable and fixed. You will not receive random calls from your contractor about new expenses. You also have no problems with under or over quoting. Right off the bat, you’ll know exactly how much you need to pay, and you can expect a specific time frame until the house is built.
With this, you can have peace of mind with this setup since construction will be simpler and the move-in process shorter. And you can find these types of packages in your local area, or you can also find ones advertised on major real estate listing websites. However, reaching out to property developers can help you find the right package as they are more than willing to assist you.
In addition, most house and land packages buyers apply for a combination of loans for the two assets. During the land settlement, the remaining price of the land contract and stamp duty is due. Your loan provider will only release this portion once the loan amount has been approved.
Moreover, your contractor will issue an invoice after the construction stage, wherein you’ll pay half of the payment. If the bank deems it appropriate, they’ll release half of the funding during each payment progress.
The Time Frame
The time frame for buying a house and land package is highly dependent on the type of developer you sign with. Some companies offer readily built homes, while others provide a ‘ready to buy and build’ promo like TERRACE House and land packages and others in Perth. With the latter, the settlement of the land happens immediately after approval from the council is received. Once settled, the construction may start right away.
Some instances, on the other hand, take a lot longer. There could be a probationary period of six to 12 months. These months include when you made the deposit and when all infrastructure located in the estate has been developed. In this case, the land title will only be processed once all infrastructures have been put up. Settlement of the land also only happens once the title is fully registered. After the settlement and once the council gives its permission, then you can proceed with the construction.
As per the construction, the time frame depends on the type of house you buy. Typically, a single home will take about four to seven months to finish following the five main stages of construction: slab, frame, enclosed, fixing, and practical completion.
Steps To Take When Buying A House And Land Package
The greatest upside to buying a house and land bundle is that it’s convenient. Despite that, buyers must still conduct their due diligence to ensure the chance of success. Moreover, you must consider doing these steps for getting your homeownership:
1. Conduct Research
It is the most crucial step: in-depth research. Before making a big decision, such as investing in a property, you must ensure that you have fully understood what you’re getting. By doing this, you can avoid any potential problems and headaches.
Research is also essential since not all properties and land developers are the same. Some are better while others are near amenities such as public transport, hospitals, schools, parks, and shops.
Also, read about the type of house and land packages. You might prefer one over the other, but you’ll never know for sure unless you read enough.
2. Get Your Finances Together
Whatever type of package you choose, you’ll most likely need to sign up for a mortgage and a construction loan. For this reason, you’ll need to organize your finances once you get a quote from the contractor.
Another alternative is to talk to a lender first and get a pre-approval to see how much money you can play around with. Also, look for multiple lending companies to see which has the best loan option.
3. Oversee The Building Process
You might already have an accurate depiction of what your house will look like after the construction phase. But it will not hurt to visit the site from time to time. Look around if there’s any miscommunication with the builder. For instance, you can check if they’re incorporating energy-efficient designs as per your preference. It will be easier to correct those mistakes when the house is not fully furnished.
4. Accomplish The Turnover Process
Once the construction is done, then you’ll need to sign some papers and wait for the standard turnover process, and then you can finally move in. With such, you can now have a home of your own.
Homeownership is made possible with a house and land package. All you need is to know how it works and how to acquire one. By using this guide, you could prevent committing mistakes that you might regret later on. Don’t forget the steps above when hunting for the best package.