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September 1, 2020

3 Things to Know Before Purchasing a House & Land Package

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A house and land package is a great option for new home buyers looking for a simple way to buy their dream house. There are 3 key areas that can assist new home buyers before embarking on this life changing journey.

1. Do Your Research

It is vital to ensure you research builders thoroughly as there are so many to choose from and will offer assistance in sourcing land options to help build your dream home.

Firstly reputation is key, what have others said?

This will be the main source of truth to help you narrow down who you even want to meet with. Platforms such as Product Review that are independent sites, where reviews are honest and have no ability to be altered or hidden should be utilised.

The cheapest isn’t always the best! Stay away from too good to be true house designs and packages. If you are looking to proceed with a builder that has lots of the nice sparkly and fancy inclusions for a cheap price, this is a red flag, have the important costs been factored into the price? This includes things like siteworks which can blow out and be a huge cost if these haven’t been included in your package price. What kind of bricks and method is being used to build your house? A cheaply built foundation will only result in headaches down the track which cannot be fixed easily or without significant financial impact.

A builder with a good reputation that is not willing to sacrifice on quality will be confident in the packages on offer when meeting with you, they will not try to over-compensate with all of the “extras”.

2. Finance

Before embarking on the home ownership journey it is important to not only get your personal finances in order but to understand what is required when applying for a mortgage. Finance can be one of the biggest hurdles first home buyers face. This is a critical step towards home ownership and banks require a lot of information to assess an application.

A few areas first home buyers can prepare themselves to be in the best financial position for assessment include:

  • Have a stable work history, with longevity and consistency in positions.
  • Savings in the bank, even if you only have a small amount of savings it’s a start!
  • Clean financial / credit rating, the less debt you have the better.
  • Income that is sustainable to pay a mortgage and incoming expenses.

3. Building a Package

When building your house and land package it is important to consider the following factors:

  1. Each suburb has ranked house prices within three categories (Upper Quartile, Median and Lower Quartile). Your house and land package is reviewed by Bank Valuers and either approved or declined based on the house package price (house + land = house package price).

First home buyers should be prepared to keep their house package within the median quartile bracket for the best possible chance of obtaining finance approval without delay. REIWA has a tool that can be used to source this information: https://reiwa.com.au/the-wa-market/suburb-profiles-search/  

2. When selecting your block it is important to consider the following as this can cost you significantly in time and money:

  • Will the block require planning approval? Blocks under 260sqm require planning review and approval which can take 3 months or more.
  • Is the block titled? Blocks that aren’t titled by the developer will delay any work that can proceed until the titles are received.
  • Is any site clearing work required? A site that hasn’t been cleared will need this to be done prior to construction commencing which could result in an additional expense.
  • Does the block require retaining? Retaining if not provided by the developer or the seller will require an additional expenses and need to be arrange prior to construction commencing.

Be mindful that you select a package that is affordable; your Consultant, Builder and Finance Specialist should guide you along the right path to ensure you are not locked into something you cannot afford or are not happy with. Living in a home you can’t afford will place you under unnecessary stress.

This goes back to choosing the right builder as they will complement the entire process and guide you through the various factors and areas that could be problematic.

At WOW Homes, we are problem solvers, we help our clients achieve their dream of home ownership. We can assist with these areas of focus in getting our clients into a position where they’re able to build their first dream home, without over-stretching themselves.

There’s nothing more satisfying than turning the lock on their brand-new home.

You could be eligible for up to $55,000!* of Government Grants + an additional $20,000 from WOW Homes to make it worth your while

Take action now because if you want to access to the $25,000 Federal Government HomeBuilder Grant and the $20,000 State Government Building Bonus Grant, you’ll need to start building within specific time frame.

As a first home buyer you could be entitled to the $10,000 First Home Owners Grant. Make sure you don’t miss out. We’ve helped thousands of people claim their $10,000 grant.

The first home owners grant (FHOG) is a one-off payment from the government to incentivise first home buyers to buy or build residential property.

The first home owners grant is $10,000 from the government, however at WOW Homes we are known to Triple the Grant*. This means we boost the grant with an extra $20,000, that’s a whopping $30,000 – this is massive especially for first home buyers.

This is not a misprint! WOW Homes is the home of Triple the Grant™. Whatever the FHOG is, we’ll triple it. Right now, you’ll get $30,000 towards your new home!

  • $10,000 First Home Owner Grant
  • $15,000 reduction in your house price
  • $5,000 to spend at your colour selection Prestart meeting

*Terms and conditions apply.

Did you know? It can take 30 – 40 days to get your home loan approved. So, don’t wait, you have everything to gain and nothing to lose.

One common myth is if you wait, you’ll get a better deal! With all of the government assistance available to you right now, there has never been a better time. This is a once in 100-year event, where interest rates are at the lowest, they’ve ever been and there is potentially up to $75,000 available to you. See if you qualify before you miss out…

WOW Homes helps cut through all the red tape. We go to the bank on your behalf, we’re a one-stop shop. We do it all for you! We take care of the entire process to make everything as easy as possible for you so you’re dealing with less people. We’ll do it right the first time. 

Our in-house lending crew have access to and work with up to 38 different Banks and Keystart and can help secure the best home loan to suit your circumstances and requirements, if you are short on a deposit.

Find out if you qualify!

Still got questions? We’ll let you know if you qualify. It only takes a couple of minutes so get in touch with us today!

You’ll always remember your first!