Have you considered buying a home and wondered if house and land packages are a good investment? In their video, “House and Land Packages: What You Must Know,” New Property Australia provides the viewer with information about these real estate transactions. House and land packages are home loans that include the price of the land plus the cost of building your home on that land.
Turnkey Packages
When looking at the contract before purchasing, pay attention to what is included. One type of house and land package is called a Turnkey Package. In Turnkey Packages, the builder agrees to have the home ready to move in, including appliances, windows, etc.
If the contract uses the term “builds from…” it will not be a Turnkey Package. If a buyer is offered this package, they shouldn’t sign until investigating what will be needed for the house to be in “turnkey condition.” This will let the purchaser know what additional actions will be required before moving into the home.
Risks Involved
A critical factor beyond the control of everyone involved in the contract is the recent increases in labor and supply shortages throughout Australia. If these shortages cause a delay, the purchaser would be responsible for extra wages during the delay period. Purchases should reserve extra funds for the possibility of a building delay due to shortages.
Many people dream of owning their own home. In their video, “House and Land Packages: What You Must Know,” New Property Australia provides information about these house and land transactions. These home loans combine the price of buying the land and the expense of having a building contractor construct your home on that land.
Be Sure the Home Fits the Land
When considering a house and land package, check the land thoroughly. You’ll want the size and design of the home to be appropriate for the land parcel. Is the land close to a rocky plain which could endanger the safety of the home you want to build?
In these business transactions, knowing who is selling you the package is essential. Are you buying from a developing company with many similar projects? If the builder is not the person who owns the land, to what extent are they communicating with the builder? Regarding the builders, what do you know about their experience level?
Look Into the Status of Land Registration
The last topic covered by the narrator was land registration. This is the process in Australia used to verify land ownership, and the transfer is compulsory before the home can be built. There have recently been delays in this process for new purchases, which will cause frustration and additional costs for everyone involved.
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