WHAT IS A HOUSE & LAND PACKAGE?

By March 26, 2021Buying Tips

The term ‘house and land package’ seems self-explanatory but understanding what is included can be tricky. 

Searching for your forever home in a dream location can be an exciting but overwhelming and time-consuming process.

I get asked very regularly from buyers, ‘ do I have to build that same house shown on the plan for this block?’, my answer ‘absolutely not’.

Combining the home and land loans into one package provides an affordable way to find the best property to suit your needs. They are popular because buyers can know the combined price of their home and land from the outset. Sometimes a buyer will secure the land first and then do a top-up loan later for the build construction. However, this may not always suit given the buyer’s financial arrangements.

What is a house and land package?
A house and land package is when a buyer secures a block of land and a home’s construction in one process but two contracts.

A buyer will have contracts for both land and construction because they are purchasing from two separate entities (a builder and the land developer). For example, in Riverstone Rise, the land is purchased from Devine (the land developer), and the home construction is purchased from a builder like Chris Warren Homes.

How to buy a house and land package?
Buying a house and land package includes purchasing a lot through a developer and then selecting a builder and home design.

Here are a few steps that will help you select a house and land package:

Find a community/developer that offers a house and land package that suits you.

All builders and houses differ, so buyers should find out precisely what is part of the deal. Many interior design elements will cost extra, as well as driveways, landscaping and fencing.

Builders may also offer additional inclusions, depending on the price and style of the home. For example, it may include carpets and tiling throughout, stone kitchen benchtops or stainless steel appliances.

Builders may provide driveways, landscaping and fencing as part of their additional inclusions. Some inclusions will depend on the house and land package you are buying.

Any change to the original build contract is a ‘variation’. Buyers should allow for these variations at completion and either has additional savings or loan funds to cover the extra.

Visit display homes to get a good idea of what you want.

The best way to find the best design and builder is to visit a range of display homes or take a drive around the community you are considering and look at existing homes. Once you have found a house with the design you like, it’s time to talk turkey with the builder. Start by enquiring about the following:

  1. Get a copy of the builder’s list of inclusions which also notes allowances for the type of fixtures and fittings – display homes feature the best fittings, finishes and appliances which may not be included in the standard package
  2. Layout – most buyers like to make changes, but these can prove problematic for the builders
  3. Know the specifics of the block you are planning to build on, as not all house designs will be suitable for each block of land you are considering
  4. Be aware of any building covenants, building design guidelines and easements

Michelle from Chris Warren homes recommends

“One of the many positives of Building a new home is that you can create a place that ticks your boxes. You can work with your builder to modify a floorplan and personalise your Inclusions & Specifications to suit your particular style of living and your budget.

There are far more house designs available than blocks of land to build on, so the land is usually the best place to start. Find an area that you would like to call home and select your block.

Arrange an appointment with your selected builder to discuss your requirements. With the right team to assist you, creating a house & land package can be a relatively simple and hassle-free option, be realistic and ensure that your expectations match your budget and don’t be afraid to ask questions.”

LOCATIONS estate agents proudly market various estates, including Riverstone Rise, HillClose, Tannum Blue and Beecher Estates. We also sell a range of vacant lots in established areas. If you are considering building a new home, take the time to look around and have a good think of the pros and cons of the location, lifestyle and affordability to you. For more tips on building your first home, check out our blog.

Photo credit: Wezzy Cruze