Are you thinking about investing in your first home? Remember, this is the biggest investment you will ever make so you need to make the right decisions. Here are a few things to consider when buying a low deposit house and land package.
1. Is It Turn Key?
Here, you can make a small deposit (about 10%) and avoid making another until the house is built and you can move in. It’s a much better choice compared to a construction loan where you will make regular instalments during key stages of the building process.
2. Is There Anything Excluded From The Package?
When paying for a house and land package, you need to know what is excluded in the final price. For instance, is landscaping included? What other offers are available on the property? In some cases, you might be given an allowance for the total building cost. However, you need to talk to your supplier to make sure it’s a good deal.
3. Who Is In Charge Of The Construction?
Of course, you need the construction to be handled by the best building experts. Therefore, do your research and find the right construction experts for your need. Make sure they are reputable and reliable. Also, these building experts need to have handled similar projects previously. Always ask for samples of their previous projects and talk to the clients if necessary to ensure they were completely satisfied by the results.
4. How Long Will The Construction Take?
A regular construction project should take about 6 months. However, you should include the regulations and permit process so you can add at least 2 months to that timeline. Before construction begins, you need to have an idea of how long it will take so you can plan accordingly.
5. Can Someone Make Changes To The House Plans?
Yes, if you don’t like the current house plans, you are allowed to make changes and come up with your dream home. However, you can only make changes before the permits have been issued and during the design phase. Once the building council consents on the construction, you can only change the painting colours and nothing else.
For instance, if you choose to remove a specific wall, you need to redo all the permit paperwork before you are allowed to continue with the changes. Also, you should be prepared to pay something extra for it. Also, your building professionals are also to increase their fees based on these changes.
6. When To Sign The Sale Agreement
Once you have looked through the house plans, you can now sign the sale agreement for the house and land package. However, you have a few days to check the due diligence. For instance, you need to know what the sale agreement contains, arrange finance and hire a lawyer to check the agreement prior to signing.
Are you considering a house and land package for your first property investment? Check out Northside House and Land package deals which are great for people looking to make their first property investments.
