Among several options in the market for purchasing a new a home, is to choose a house and land package. It's the perfect deal for many - a brand-new, 7-star home, packaged conveniently with an ideal block, in a vibrant new community. There are many developers and builders in Queensland offering house and land packages, so it’s important to understand your individual needs, and shop around for a deal that’s right for you and your family.
What is a house and land package?
Just as it sounds, a house and land package is where a builder or land developer pairs a block of land with a compatible new home design, to be sold together. For new home buyers, it is a more convenient alternative to shopping for land and a builder separately, and offers plenty of major advantages.
What are the advantages of a house and land package?
Guaranteed compatibility
Often, when purchasing a block of land separately, buyers fall into the trap of being limited in the choice of home designs that can be built on that block, sometimes resulting in a compromise to their dream home. With a house and land package, you can see the full picture of your new property from the get-go, and be rest assured the floorplan and block have been expertly selected for their ideal compatibility.
Fixed pricing
At Plantation Homes, our advertised house and land package prices are fixed. With information about the block of land known from the start, we are able to incorporate the site costs into the package price, so there are no nasty surprises down the track! The fixed price also includes our standard inclusions and any relevant promotions on offer at the time.
Flexibility to customise
Purchasing a house and land package shares many of the same advantages as buying one of our move-in ready homes. However, unlike a move-in ready home, house and land packages are purchased before construction begins. You get the benefit of a pre-priced design that suits the block - with the flexibility to personalise it to your lifestyle. Just remember, if you choose to customise your new home with items that aren't included as standard, these will be charged in addition to the fixed price.
Convenience is key
There is a lot to consider when it comes to planning a new build, but with a house and land package, we've taken the headache out of going back and forth between us, and various land developers, to check the compatibility of different blocks and floorplans. It's a lot less work and will save you heaps of time.
How is a house and land package financed?
Financing a house and land package - and any new build in general - is different from a standard home loan.
Although the block of land and new home are marketed together as “package”, you are still entering into a contract with a developer to purchase the land, and a separate contract with a builder to construct your new home. As such, the financing will consist of two separate components, a land loan and a construction loan. You can apply for both loans together or separately—starting with a land loan, followed by a construction loan once you're ready to build.
You'll be pleased to know that you only need to pay transfer duty on the land component of the fixed price. Depending on your circumstances, make sure to check with your lender if you are eligible for a transfer duty exemption or concession. If you're a first home buyer, you may also be eligible for the First Home Owners Grant (FHOG).
1. Land loan/mortgage
This loan will cover the cost of your block of land. Once ownership of the land has been transferred into your name, you will need to start making mortgage repayments on your land loan.
2. Construction loan
A construction loan funds the building portion of your house and land package. Once your building plans and permits are finalised, your bank will prepare to release funds for construction. This loan is ‘drawn down’ across 6 stages of your home's construction. This means that the bank pays your builder in increments at the end of each stage, and you will only be charged interest on the amount of money you have paid thus far. These progress payments may differ slightly between builders. Find out more about how a construction loan works here.
At Plantation Homes, our process is made up of 6 progress payments.
- Deposit – paid at contract signing, this payment is 5%, less initial deposits you have already paid.
- Base – 15%
- Frame – 20%
- Enclosed – 25%
- Fix – 20%
- Completion – 15% plus any variation orders.
How long does it take to build a house & land package?
The construction time for a house and land package follows the same time-frame as any other new home build - anywhere between 6 to 12 months. However, by streamlining your search for land and a home design into one, you will save time in the planning stages that could see you moving into your new home sooner!
House and land packages are a fantastic option for building a brand-new home. At Plantation Homes, we always have a number of fixed price packages available across South East Queensland. Explore our great value packages and be on your way to a stunning new home, the easy way!
