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Five Things to Consider Before Buying a House and Land Package

10 February 2022

There are important issues to consider before you purchase a house and land package today. First of all, you want to know the developer’s history and track record for similar projects. Do some research on the builder’s record and financial status or current business reputation. To ensure your own personal and financial well-being, you want to be certain that you are working with a high-quality developer and builder.

Five Important Issues to Consider Prior to Buying a House and Land Package

The following five issues are important factors to consider before you decide to purchase a house and land package:

1. Bait Advertising. Beware of bait ads and bait pricing when shopping for a quality house and land package. You may see ads for these packages at attractive prices that do not include basic costs for essential items like flooring, fencing or driveway construction. These aspects of your house and a land deal would be extra add-on costs. If possible, you want to obtain a turn-key deal that includes everything from appliances to window blinds.

2. Time Frame for Registering Land Titles. You need to know when the land titles will be registered before you purchase a house and land package. If the land is not yet ready for buying and building, there could be a long delay in the creation of your new dream home. You need to know whether you must accept a waiting period before your package deal can be finalized and building can begin.

3. Construction Start Date and Projected Finish. How soon will your builder begin the construction of your new home after your land settlement? What is the projected time period for completion of your new house construction?

Reputable builders will include a construction time frame within which your house must be built. Barring natural disasters or harsh weather conditions, they must complete your home during this time period or pay you a penalty for each extra day needed.

4. Cut and Fill Expense. If the land that you bought needs cut and fill work, the cost of this procedure may not be included in your package pricing. This work entails levelling the ground, which may require cutting down one area and filling in another. Get a definite answer from your builder concerning whether this cost is included in your package price or an extra fee.

5. Cash Flow throughout Construction. Be aware that immediately after your land settlement, you will begin payments on your land mortgage. As you make payments on each phase of the building expense, you will be paying interest as well as council fees.

You must have sufficient cash ready to cover these expenses. However, you will gain some savings in stamp duty since it is due only on the value of the land. Also, all of the interest that you pay on your mortgage will qualify as a tax deduction.

By consulting our experts at Olympia Homes located in Alexandria, NSW, in the South Sydney area, you can gain valuable information and advice about buying a house and land package. Our experienced team will explain important things to consider before you select a package and sign the contract.

Our professionals can ensure that the developer and builder with whom you will work are top-quality pros who are sure to construct the future home of your dreams.

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