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Buying a house and land package

Homes packaged with the land they're to be built on are called House and Land Packages.

If you are interested in purchasing in this manner you should thoroughly research the developer and the location of the proposed construction site. Your next step involves selecting and deciding on a display home and package. Become aware and understand the different processes when building and constructing a residential home.

Research your location and developer

• What experience have they got and how long have they been in business?
• How many packaged homes have they sold?
• Get referrals, and ask the owners if they were satisfied with the workmanship.

Check on appropriate builders warranty insurance cover

Selecting a Display Home

• Walk through various display homes to compare designs and costs, along with workmanship and quality of materials
• Pay attention to the detail and finish of the home, such as painting, carpentry and tiling to check whether they are of a high quality.
• Would you like to change a particular aspect of the house? Find out the extra costs involved and compare these with the price of the original design.
• Ensure that all features, services and materials are listed in the contract

Types of Packages

1. You purchase the land before the house is built
When buying the land first, you will have to pay a deposit of generally 10% of the purchase price, with the balance on settlement. This way you will only pay stamp duty on the land, rather than on the construction of the house.
In this structure, you will need two loans - one for the land and one for the construction. You will need to make progress payments at different stages of construction.

2. You buy the house already completed on the developers' land.

If you decide on this option, all you need to do is give a 5% deposit, with the rest once the home is completed. There are no progressive payments with this option, which you can use to your advantage for either renting whilst the home is being built, or saving a larger deposit for the loan.