House & Land Packages – Advantages and Disadvantages

House and land packages are an attractive alternative to constructing a new house or buying an older house and refurbishing. Developers go out of their way to make the process of purchasing their packages much easier and cheaper than the alternatives, but typically leave the possible risks out of their sales pitches. There are plenty of favourable reasons for purchasing a house and land package, however there are negatives too. Weigh the pros and cons of house and land packages in the balance before making this all-important choice.
House & Land Plans: The Advantages
House and land packages are not a new phenomenon, but they ended up being widespread in the post-WWII baby boomer years, when inner city realty ended up being too costly and tough to find for first home buyers. Developers bought large areas of land in the outskirts of significant metropolitan areas, sub-divided them and provided off-the-plan homes to potential buyers. A lot of early developments were geared for first home buyers with growing families. Today, you can find developments tailored to all income levels, from modest single storey brick veneer packages to elegant two-storey designer houses. Whatever your budget plan may be, today’s packages offer a variety of benefits:
• Detailed plans save you the expense of working with an architect or draftsman.
• The council approval process is streamlined.
• You can generally save thousands of dollars on stamp duty.
• Flexibility of design and inclusions enable you to personalize your residence to suit your tastes.
• Developers often liaise with financial institutions to help you with financing.
In the past, housing developments tended to have a “cookie cutter” look. Every home in a development looked nearly identical. There is far more room for customisation today. You commonly can choose your cladding, features and even the design of your home. In a lot of cases, you can change room configurations and choose between a range of interior fittings.
House & Land Packages: The Disadvantages
Land development is a profit-driven business like other. Developers try to find ways to reduce their costs to maximise their profits. They do this by:
• Getting land on the outskirts of urban centres, where it is cheaper.
• Purchasing materials in bulk.
• Hiring building crews and other tradesmen who want to work at discounted rates.
Their cost-saving measures can cost you in a variety of ways:
• Your house and land package could be a distance from schools, health centres, shopping centres and other public amenities.
• The products used in building your home might not be of the best quality.
• The builder could be under pressure to complete the task swiftly and inexpensively. On the other hand, a custom-made home builder’s track record depends on the quality of their handiwork.
Choosing a House & Land Package
The trick to making a great investment in a house & land package is to treat your purchase as you would treat the purchase of land for constructing your own house. Is the land near the infrastructure and facilities you need? If not, are you positive they will exist in the near future?
One of the biggest errors purchasers of off-the-plan houses make is presuming their finished residence will have all the inclusions they see in a display home. After selecting your plan that fits your budget, take a close take a look at exactly what you’re paying for. Is the cost inclusive? Are you delighted with the inclusions you’re paying for? Don’t presume anything. From light switches and electric outlets to carpets and kitchen and bathroom products, everything ought to be detailed in your plan and itemised in your quote. If you really want any variations on what is included, have those included in your final quote prior to signing a contract.
A sales consultant will help you pick your house and land package, but remember that they are employed by the developer and might have a sale uppermost in mind and not your interests. If in doubt, work with an independent building advisor to go over your contract before you commit to anything.
Finally, deal with long-established, credible developers. If they have a good reputation for quality and service, you can be more confident you won’t be in for any nasty surprises after you have actually signed a binding agreement.
Although at Martin Fallon Family Homes we don’t do house and land packages, we are happy to assist you in finding land to build on. Even to the extent that before you buy the land, we are will provide you with a bare block assessment and discuss with you the considerations in building on that particular land. This way you are fully informed before you make your land purchase.