When you and your family have been dreaming of finally having your own home, you are probably thinking if you should go for an established home or have your future home built from the ground up. If you prefer a brand new, fresh, sparkling new home, you then need to consider whether you should invest in an off-the-plan home or go for a house and land package.
What is an Off The Plan Home?
Buying a home, townhouse, or apartment that is off the plan means you are signing a contract to purchase a property that has not yet been built. You may look at the property developer’s plans for the property, and display homes visit to see how the finished product will look, but you will not be able to view the actual building as it has not yet been built.
In most cases, buyers will pay an initial deposit, and the balance will be payable only after the project construction is in stages or after fully completed. The time it will take for the construction completion may vary from several months to a few years. It does offer an advantage in the sense that you will have more time to save money. There is also the chance of the property’s value increasing, resulting in capital appreciation.
What is a Home and Land Package?
When a home buyer secures a plot of land and the building or construction of a home in a single process with two separate contracts, referred to as a house and land package. The reason for the two contracts is that the land is often sold by one company or entity, and the house is bought from a house builder.
When it comes to a home and land package, you will be informed of the total cost of land and the home from the start. It helps to reduce any risk of unexpected costs later on. The mortgage amount is calculated initially based on the value of the land. Then, follows your loan for the construction of the home.
With the house and land package, you will still have to wait before moving into your new home because, though you will own the land sooner, you will have to wait until your house has been built.
Which Offers More Choice
When it comes to having more freedom of choice, both options have limitations. The reason why a majority of home buyers opt for either off-the-plan or house and land packages is that it allows them to own their dream home within their budget.
OFF THE PLAN – LIMITED CHOICES
The house plans have been already set. You may be able to personalise your home by choosing floor plans and an indoor colour palette to allow for some custom home designs, but the options would be limited.
HOME AND LAND PACKAGE – MORE CHOICES
A house and land package offers more chances to personalise your home. But the developers usually have a limited selection of house plans and designs that suit the shapes and/or different block sizes. An in-depth conversation with the builder would be a very good idea.
Owning your very own home is a dream for most Australians. There are choices available, and each with its upsides and downsides. With careful consideration and some research, you will be able to get that home you have always wanted.