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House and Land Packages

On Nov 27 2013
Tagged as:
  • Investing


House and land packages can offer a relatively straightforward approach to property investment. But just how safe a strategy is it? New property can be popular among investors for several reasons. From minimal maintenance issues (generally speaking) to the potential to command a higher rent, and of course, tax depreciation benefits, new property can have a strong appeal.

House and Land Packages

House and land packages can offer a relatively straightforward approach to property investment. But how safe a strategy is it?

What are the Benefits of House and Land Packa

House and land packages can offer a relatively straightforward approach to property investment. But just how safe a strategy is it?

New property can be popular among investors for several reasons. From minimal maintenance issues (generally speaking) to the potential to command a higher rent, and of course, tax depreciation benefits, new property can have a strong appeal.

A house and land package is a popular solution for many property investors who would like all the benefits of a new property – without the hassles of construction management.

Essentially an off-the-shelf product a house and land package also offers scope to tweak the design and look of the place to fit your own needs and goals.

The Appeal of the Package

Perhaps the biggest appeal of a house and land package is the convenience it offers. This can be a particular drawcard for first time buyers.

A good house and land deal will take care of everything for the buyer. There is no need to deal with individual architects, builders or contractors. The developer takes care of everything from the get go.

But while the property developer will take most of the stress off your hands, you’ll still have a degree of choice with regards to the finished product.

From colour schemes, to bench tops, floor coverings and landscaping, most packages offer buyers the ability to mix and match options to suit their own needs. Of course, this will vary, and some packages will offer more options than others. Different options will also come at difference prices.

Knowing the Risks

Building a property from scratch can be a risky investment strategy, particularly when it comes to the cost. Ask anyone who has built before and they will tell you it’s almost impossible to stick to a budget.

The advantage of a package is that it will usually come with all costs ‘fixed’ into the price, which can reduce the danger of any blowout in expenses and the risk of falling too deep into debt.

But while a package may offer a ‘fixed’ price, its crucial buyers know exactly what is included in that price. If the price doesn’t actually include all costs, there could be a string of nasty surprises – and expenses – you could face down the track.

In particular, find out if site work costs are included – that is costs associated with preparing the block, such as removal of trees, levelling and compacting the site and connecting utilities.¬ If they’re not included it’s important to factor these costs into the budget.

External features such as fences and driveways and even blinds are not always included either, so buyers need to find out what the price is actually buying them.

Also make sure you know what terms and conditions apply and whether there are any warranties or structural guarantees in place.

It’s also crucial to have building and contents insurance as soon as the land is settled. This will protect you against any adverse event, which is not the fault of the builder.

Making the Move

When it comes to looking at property types and providers, start your search online. This will give you a thorough idea of what types of options are available, price guidelines and where packages might be available.

Your next step should be to visit display villages or display homes and sales centres. The more companies you speak to you and the more homes you see, the better versed you’ll be to make a wise decision.

Before committing to any purchases it’s crucial you do your due diligence on both the property developer and the location. Investigate the area, ensure you’ll be close to quality amenities and transport, and find out if you’ll be surrounded by ongoing construction.

In terms of choosing a reputable developer, ask to see houses they’ve already built and ask around for testimonials.
 

At a Glance

Why choose a package

  • Convenience – a house and land package takes the hardest part of building off your plate
  • Flexibility – packages usually offer a wide range of options with the ability to mix and match inclusions to suit your needs
  • Security – a house and land package usually offers a fixed price guarantee which can safeguard you against a budget blowout
  • Tailor made –design a property exactly as you want

Steps for success

  • Go through your contract with a fine tooth comb and know exactly what your property includes and what it doesn’t
  • Do your due diligence – choose a reputable, professional developer and be sure to research the location. Drive around the area to get a real feel for it.
  • Shop around to ensure a well-priced deal
  • Be sure to visit a developer’s existing properties before committing to any sale contracts
  • Make sure you’re aware of any government incentives you may be eligible for
  • Seek professional financial assistance

For further property investment insights and all the latest property market news visit www.spionline.com.au

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