As an aspiring homeowner, house and land packages may sound like a great option. It’s especially enticing if you are a first-time home buyer since you are offered competitive prices, tax deductions, and the chance to customise your house according to your preferences, needs, and lifestyle. However, you need to consider the disadvantages before deciding to buy. That way, you can make well-informed investment decisions. Use this article as your guide to help you weigh its pros and cons, allowing you to make well-informed purchasing decisions.
What Makes House and Land Packages Worth My Money?
If owning a newly built home is your priority, then a house and land package may be worth your time and money. It’s hassle-free and affordable, providing you with the opportunity to find an aesthetically pleasing, energy-efficient, and durable house!
In the long run, you can also reduce spending costs on home maintenance because you may not need repairs. But you have to partner with a reputable home builder that can provide you with cost-effective services. Additionally, your property may be covered by warranties, meaning your household is protected in case something happens.
House and land packages can also be very affordable. They come in two varieties, namely the turnkey package that offers a newly built home on a particular lot, and a home and land package that gives you the option to buy vacant land then build a home there.
You might also be eligible for tax deductions and other savings on list price and ongoing maintenance when you choose a house and land package. You can save more by taking advantage of first-home owner grants and stamp duty concessions if you build or buy a newly constructed home.
What Are the Disadvantages of House and Land Packages?
House and land packages may seem like an appealing option, but they have cons you should know about. For instance, they have hidden fees, such as additional features that come at an extra cost. To save yourself the hassle and frustration of paying these, make sure to ask your builder for a detailed breakdown of the property’s price. This way, you know exactly what your money is buying.
In addition, you may also get concerned about small lot sizes. Over time, lot sizes in new developments have become smaller to keep house and land packages affordable. In fact, the current average is less than 395 square metres in Sydney, Melbourne and Perth. If having a massive lot is on your wishlist, then this option may not be for you.
Furthermore, while house and land packages give you the freedom to customise your home’s design to suit your needs and lifestyle, expect even the smallest changes from the standard design can increase the property value. Therefore, make sure that your budget can handle extra costs when you plan to alter the home’s original design. Feel free to explore home loans available to you to take advantage of the right finance solution for your property.
Purchasing your very first home is exciting, but it can be stressful and overwhelming. If you plan to take advantage of house and land packages, remember the information mentioned in this guide to help you determine if they are a worthwhile investment and let you enjoy your sparkling new home to the fullest.
If you are an aspiring homeowner in Perth looking for house financing options, don’t hesitate to contact us. Our finance managers at FinanceCorp are fully qualified, trained, and experienced mortgage professionals who live and breathe finance. Contact us to see how we can help you!