September 12, 2019 9min read
House and land packages are pretty much exactly as the name suggests; they’re bundled options to joint purchase a new home and block of land in the one go. Although a simple explanation, the process can be a little confusing, which is why we’ve put together this short guide to understanding the logistics of a combined house and land purchase.
How do house and land packages work?
At Porter Davis the land for our packages is chosen with optimal living in mind; this means we secure the land most suited to a particular home design so you can take advantage of the very best an estate has to offer. We work out the price of our packages by calculating the price of the land + the cost of the home design + the cost of the build = a price which remains 100% fixed! The inclusions within your house and land package will vary depending on the range your design is from. These packages also take into consideration estate covenants (estate specific rules for a new build) and this is factored into choosing the right design for the block.
If you’re looking for something brand new yet feel like you’re not in a position to deal with the build process, our Porter Davis Real Estate (PDRE) options are a selection of homes that are close to completion so they’re ready to move into in 90 days or less – just like a regular settlement period! The benefit of these is you get all the perks of a Porter Davis build with a shorter wait time until handover. It’s similar to buying established but you get something brand new plus, if you’re a first home buyer you’ll most likely qualify for the Government grants and concessions that come with purchasing new property.
What are the benefits?
House and land packages are a great option, mainly because the price is 100% fixed so you know the cost of your build from the outset. They’re often more affordable than a regular build, so you get the best of both worlds: being able to buy brand new for the same price as buying an older, established home. This is beneficial in the sense that everything is new, so there’s no weekends spent ripping off old wallpaper or emergency calls in the middle of winter to get your heater serviced. Not only is your home in better shape when it comes to repairs, but it will be more energy efficient too (in line with requirements of the National Construction Code for new homes). Which in turn, will save you money on power bills!
The other main benefit over buying established is there’s more room to personalise your design and ensure you’re getting the home of your dreams. You can plan ahead and make sure there’s extra rooms if you’re planning on growing your family, or look for designs with a spacious outdoor area if you’re a keen entertainer. Even though you’re buying a package, you have the freedom to choose a design that fits your lifestyle: now and well into the future.
What to know when buying a house and land package
One of the most common questions we get is: how do I choose a house and land package? First things first, start by determining the area you want to live in. Searching for available house and land packages in this area is obviously going to be more a more viable option and ensure you end up in your desired suburb. If location is not an issue, then browsing a builders available house and land packages is a great place to start and gives you endless choices when it comes to design options for your new home. If you’re on the fence, it’s also a great source of inspiration and a good way to see what’s on the market.
If I find land I like, can I choose a different home design?
Most of the time, given that your block size is compliant with the desired design, this should be no issue. However, if your block is a Small Lot Housing Code (SLHC) it may not be compliant, so it’s always best to check with your Sales Consultant before making any big decisions.
What about getting a loan?
As with all home purchases, it’s recommended you get pre-approval prior as it gives a good indication of your spending limit. You’ll most likely need to apply for a construction loan which means money is borrowed per stage as needed. This is beneficial in the sense that throughout the process it means you only pay interest on the balance that is outstanding, not on your agreed total loan amount.
For anyone still weighing up whether to purchase a house and land package or buy separately, combined purchases are a much easier and cost affordable way to go for your first build. While buying off the plan can be daunting, it’s exciting to know that you’re building your own dream; not living in someone else’s. Of course, seek professional financial advice and make sure this is a viable option for your personal circumstances. Do your research, choose your area wisely and go with a design that is going to suit you now and well into the future.
Think a house and land package is right for you? Browse all our latest options here.
Images for illustration purposes only. Taken from our Dunedin 31 on display at Upper Point Cook