Why house and land packages make sense

Understanding how house and land packages work and if it makes sense are two questions we often get asked here at Rawson Homes. So we've decided to give you the low down on house and land packages to help you understand the process and determine if it's a good option for you.

Let's get started!

First up, house and land packages are one of the most affordable ways of getting into the property market. So, if value is important to you, you're in the right place. That's because by combining the land with the house as one package, you're substantially reducing costs that would otherwise have been incurred — more on this a little later.

A fresh start.

You would be familiar with new land releases being advertised from time-to-time – what we call greenfields. You might even have your eyes on one. 

Essentially there are two types of purchases that you can make from this process;

1. Land-only: You buy the land-only and engage a builder to build your home.
2. House and land: You purchase a package that has both the house and the land included in one cost. 

Unlike the hidden costs that can come from buying and renovating an existing home, the upfront price model of a house and land package gives you peace of mind of having one locked-in fixed price package.    

There's real value when you combine a house and land package.

Stamp duty. 

When you buy a house and land package, you only pay stamp duty on the value of the land, whereas when you buy an existing house, you pay for both the house and the land. That's a significant saving right there!

Bank loan.

While a house and land package is bundled up as a single up-front cost, you will still need to take out two contracts – one for the land and one for the construction of the home. The upside is that you only pay interest on the construction loan when funds leave your account – traditionally for things like; slab pouring, framing and lock-up. That's some serious savings on interest payments you would otherwise be making.  

Returns.

We often build for ourselves, but it's worth considering the investment opportunities that your home brings. You may not be thinking about it right now, but it's great knowing the house you have just finished building has already significantly increased in value. That's because your capital outlay is lower, you've saved on fees, you're building in a sought-after area, and your home is covered by a builders warranty – good for you and good for your future buyers!

Lifestyle.

So we've covered off the financial aspect of a house and land package – tick. But what about you? What about the lifestyle aspect?

Nothing beats a home that's built just for you. We're all different, and how we live is unique. You might have a larger family that needs that extra space, or you’re making that transition from apartment living and can't wait to give your pot plants some real roots to lay down. Maybe you're an entertainer – love having friends around for a weekend BBQ, or you crave quiet time in spaces that lift your spirits. Our point is, it's your lifestyle, and when you build it, it's built exactly the way you want it. That alone should make a lot of sense. 

So in summary, if you’re considering a house and land package, take comfort in knowing it’s an affordable way into the market that brings peace of mind and strong investment returns. Visit one of our display locations today to see our homes for yourself and speak to our friendly staff. 

Hopefully, this has provided you with some helpful insights into how house and land packages work, the financial benefits of building this way and the lifestyle improvements you can enjoy.

If you've got any questions relating to house and land packages, we have a team of friendly consultants that would be more than happy to walk you through the process and answer any questions you might have. Give us a call on 1300 223 345 or enquire here and get your dream home underway today.