buy or build new home

Is It Better to Build or Buy a House and Land Package?

Typically, most people looking to buy homes get confused about which would be better – buy a turnkey home or build one. There are advantages as well as cons with both choices. Making the final decision may boil down to your finances, needs, and preferences. 

You can buy a block of land where you plan to have your own home built. You have the option to purchase the land first, and then decide on what type of home you want, which builder, and other inclusions. Or you can opt for a “house and land package” which usually includes everything from the block of land to the house floor plans to the floor tiles and showerheads. 

What Does Building A New Home Involve?

If you already own a block of land, you have a few options to build your home. You may choose from having a turnkey home, a luxury residence, or a customised design. Whichever you choose, they all involve looking for a reliable builder. Most builders have fixed price options, several designs, and display homes you can visit and look at to help you decide. 

What Does a House and Land Package Mean?

Buying a house and land package and buying off the plan have similarities. The major difference between the two is the matter of ownership. 

With a typical package for house and land, you purchase the land and, therefore, own it from the start. Your new home will be constructed later. In buying off the plan, you will own your house and land after the construction, and there has been a settlement. You can view the types of homes you may be able to have built on your land at the display home centres of the builder.

A house and land package is often a more affordable option because it combines both land and home loan in one. It is buying a block of land and organising the building of a new residence in one process although there are separate contracts involved – one from the company that sold the land and the second from the luxury home builders in Sydney

With such a package, you know the total cost of the land and the new house price right from the start. There will be less stress regarding unexpected expenses later on. The mortgage is usually calculated based on the price of the land first and the second loan for the home’s construction will be taken out later. 

Potential Risks

Certain risks need to be taken into consideration when buying a house and land package:

  • Inclusions and Exclusions – When opting for a package, you need to know what the deal includes and what the things that could cost you more money. For example, a complete kitchen would be included in the price of the package and is probably available for viewing at the luxury display homes in Sydney, but landscaping may not be. 
  • Lengthy process – Building a new home takes time. Plus, there may be unexpected delays. It may put you in a spot, especially if you live in temporary accommodations or are renting. 
  • Negotiations regarding home layouts – Communicating with your builder regarding the design of your home can get rather exhausting, not to mention confusing. It would be best to make your choices clear to the builder before signing contracts. 

Whether you decide to build or go for a house and land package depends on your personal preference, budget, timeframe, and needs. 

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