A house and land package happens when a builder sees an opportunity to purchase land recently made available by the government. The builder will then build infrastructure, like roads, electricity and plumbing, and sell blocks of land to be developed into contemporary homes. In this manner, a homebuyer will be more or less purchasing the land and gaining the house and land for a much lower price. This gives the homebuyer, or investor, an opportunity to gain from their new home by adding equity to the property.
There are many benefits to choosing a house and land package, but how do you know if it’s right for you?
Rawdon Hill offer a range of new modern homes and house and land packages, so we know when it will benefit you and when it won’t. Here are some things to take into consideration when determining if this package is right for you.
Consider the potential monetary advantages
Not only are you paying stamp duty just on the land rather than on the house and the land, but you can also claim depreciation benefits because the house will be new and under construction. In addition, newer homes are easier to rent out should you be using it as an investment property, and if the land value in your area increases, so does the value of your package.
Less maintenance costs
Because everything is new, from construction to features to appliances, you’ll be paying far less in maintenance and repair costs than you would with an established home. In addition, you’ll be under the builder’s warranty for some time if something were to break down, so you’ll be completely covered.
Supply of house and land packages is surging
In Victoria, specifically around Melbourne, there is a rise in the development of house and land packages, and at the same time, the rental market is softening. Many people who might have rented are building instead due to the cheaper price of building a new home. In addition, if you choose a location where many others are purchasing house and land packages, you might notice that once the houses are completed, almost every one in the neighbourhood is up for rent.
How location can add value
Think about where your home is because this will determine if your land will appreciate in value over time. You’ll need to recognise that land value will appreciate while home value will depreciate, so choose a plot of land that is close to a good social infrastructure, like shopping and schools. Being close to bodies of water is a huge plus and will add value to your land.
If you have further questions about whether a house and land package is right for you, don’t hesitate to contact Rawdon Hill in Melbourne. We offer many such packages and pride ourselves on transparency in all of our dealings. One of our friendly and honest specialists is happy to assist you.