While many people prefer to buy land for sale on which they can build their own property from scratch, this isn’t the only option for future homeowners.
House and land packages or another potential pathway to consider when you are searching for a new home. It involves purchasing a block of land as well the property that exists on this land.
When you purchase a house and land package, you will own every aspect of the plot. This includes the home itself as well as all of the fixtures and interior design pieces, as well as any trees, shrubs, and fences on the exterior of the property.
When you purchase a house and land package, you usually sign a two-part contract. The first part of the contract involves purchasing the land from the land developer with a 10% deposit. The second part of the contract requires you to provide a 5% deposit to buy the property itself.
The reason you are required to sign a two-part contract is that the owner of the land and the owner of the property are usually two separate people.
How Long Does it Take to Purchase a House and Land Package?
The exact length of the time that it takes you to purchase Townsville house and land packages varies depending on a variety of factors. Usually, approval takes around 1-2 months but you may be waiting between 6-24 months for the full property development to be completed.
Remember that you won’t pay the full sum of money until the property is complete and all of the necessary infrastructures are in place. Only once everything has been completed can the property be registered and approved by the local authorities.
Whether you are getting a loan or not will also affect the speediness of the process. If you are getting a loan for both the land and property, your bank may take longer to approve your application. The bank might also stagger the release of funds based on the progress of the property development.
What Are the Key Benefits of Purchasing a House and Land Package?
House and land packages can provide unique benefits compared to other purchasing options. Stamp duty is usually lowered in house and land offerings because it is based on the value of the land and excludes the property.
In many locations, the local authorities provide incentives for first-time buyers who are looking to purchase house and land packages. There are also loans and grants available for individuals who are interested in such packages.
Investors who are looking to create a diverse portfolio and invest in properties that can be easily rented out to couples and families will benefit from purchasing house and land packages. Since stamp duty is reduced, investors can save money and increase profits once they rent out the property.