What is a House & Land Package?
How does Finance work?
Financing for a package deal usually involves two steps, buying the land then building the house. Whilst two loans may be involved, your bank or lender will typically bundle them together.
Purchasing the land is a standard real estate transaction which requires a standard mortgage. However, the loan for the house will likely be a construction loan, whereby payments are made in stages to the builder as different phases of construction are completed. You’ll only pay interest on the money you’re using at each stage.
Most banks and lenders are experienced in dealing with finance for house and land packages, so obtaining a loan should be no more difficult than if you were to purchase an established home. It may also be easier than obtaining two separate loans to buy land and build a custom home.
Home builders that specialise in home and land packages, such as WOW Homes, will be able to guide you throughout the financing process and help you find the best possible home loan for your needs.
Grants available for New House & Land Packages
Many states and territories offer grants for buying or building a new home, as well as tax or stamp duty concessions, particularly for first homeowners.
Additionally, the Federal government also offers grants and concessions that may be applicable to you. Navigating the applications can be difficult so working with an experienced house and land builder will ensure you get all government grants that you’re entitled to.
At WOW Homes, we’re home of Triple the Grant – we’ll triple your First Home Owner Grant meaning you’ll get $30,000 towards your new home. Get in touch to find out more!
What are the benefits of House & Land Packages?
There are many factors that make house and land packages so attractive to first homebuyers, downsizers, retirees, and even investors.
- Value – Usually cheaper than buying a similar established home, and almost always more affordable than buying land and building a custom home, a house and land package is the most cost-effective way to own a brand-new home.
- Timing – A house and land package is a seamless process where everyone works together to deliver your home in the quickest time possible. Building this way is much faster than buying a vacant block and having a custom-built home constructed.
- Price Certainty – Once you sign the contract, you will know upfront what the final price will be.
- High Capital Gain Potential – Equity in your home, or your capital gain as an investor, is likely to rise faster than by buying an established home.
- Low Maintenance – Your new home should not require any structural maintenance during the first few years and if it does, it will likely be under warranty.
- Flexible Design – Choose from a wide variety of home designs and facades to create a home that suits your taste and budget perfectly. Select colours, fixtures, and finishes to truly make your home unique to you.
The House & Land Package process
Once you have researched the area in which you want to build, research developers and builders in the area and visit display homes, if available.
- Find a block of land in the estate or area that you like. Be sure to do your due diligence, as the costs of building on different blocks can vary considerably. There are many factors that can influence costs, such as covenants on the estate, the results of soil testing, retaining walls, engineering, lot size, and landscaping.
- Place a deposit – when you choose WOW homes, $1500 is all you need to start the process of home ownership.
- Select a home design and any variable features or upgrades according to your budget, design preferences, and specifications.
- Make sure you know exactly what is and isn’t included in the package (for example, driveway, fencing, light fittings, appliances, floor coverings, landscaping), the final price and the timeframe allowed for completion.
- Sign the contract with your builder.
- Watch your new home take shape and come to life as each stage is completed.
- Conduct a detailed inspection of the finished home before releasing the final payment via your lender.
- Move in and enjoy your new life in your brand-new home!
Find out more
House and land packages are an ideal alternative to buying an established home or choosing a knock-down re-build. They are an easy way to get your foot on the property ladder or achieve your dream of owning a brand-new home that has been tailored to suit your requirements.
Working with an experienced builder with a reputation for delivering high-quality homes will ensure a result that far exceeds your expectations.
WOW Homes is an award-winning WA based building company with over 30 years’ combined experience creating stunning new homes throughout Perth and beyond. We help customers through every stage on the path to ownership, from finance applications to choosing the perfect house design. It’s what we do and what we love so, get in touch with us today and start the journey to owning your own WOW home. Call (08) 9318 6000 or enquire online now.