A house and land package enables homebuyers to fulfil the dream of owning their home. The packages enable buyers to buy land and the right to build their homes, but with two different contractors. A major advantage of such packages is that buyers can decide on the design and features they want in their new home.
Types of House and Land Packages
When it comes to house and land packages, there are two types. Typically, real estate developers buy land and subdivide them into smaller plots. The plots are then sold to buyers as part of home and land packages. The packages provide two options or two types of packages for homebuyers – the standard and the turnkey.
The standard home and land package means you buy a plot of land within the development and build a house via a construction loan. It means there will be two loans – one for the land and the other for the house. The second loan is to finance the building of your home on the land that was initially bought.
The second package type is to buy the house fully completed on the developer’s land. This is commonly termed a turnkey package because the home is ready to move into, and you only have to “turn the key” to unlock the door. The house already has fully fitted bathrooms, flooring, a kitchen, and other features.
When you buy a standard house and land package, you buy the land first and build your home later. There will typically be two contracts as one will be for the mortgage related to the land, plus a construction loan to build the house. The loans may be separate or may be combined depending on the situation.
The construction loan is drawn according to the construction stages. It means the buyer will be paying interest on the amount as it is used. Typically, the construction stages are as follows:
- The pouring of the concrete slab
- Erecting of roof and walls
- Lock up a stage or secure the home
- Project completion
When you are having your home built, you will have some freedom to decide regarding the design than that of a turnkey property. The developer will have a selection of customisable home designs you can choose from. You will also have the opportunity to add any extras you may prefer.
A turnkey home is a prebuilt home with all the features. It is commonly seen in subdivisions and is often referred to as a subdivision house. The exterior appearance of turnkey homes is often very similar and, in most cases, even the interior layout.
When it comes to turnkey homes, the advertised price or cost of the package is usually the minimum price without any added features, house upgrades, or “inclusions.”
Turnkey house and land package finishes are basic, and if you prefer to add your personal touch to the home, it will mean additional costs. If, for example, you would like to upgrade it into a smart home, upgrade the building, or upgrade the flooring, it will cost you extra. Anything you add that is not within the basic package will cost more.
House and land packages make it more affordable to own the home you have always dreamed of. All you need to do is seek as much information as possible for the best choice.