More often than not, buyers are quick to presume that established homes or units are the better and more pocket-friendly investments options than house and land packages. However, once hidden expenses—under the guise of ‘extras’—of older or established properties come to light, the circumstances suddenly change.
Here is why.
House and Land Package Defined
Simply put, when you purchase a house and land package, you’re buying both the house and the land it is set to be constructed on. These are normally offered in key neighbourhoods of new development estates and you can typically choose from a range of predetermined home designs.
Standard and Extra Package Inclusions
One of the main draws of investing in house and land packages is the standard and extra inclusions it comes with, says Modeina. When you factor in the costs of these inclusions like landscaping and interior finishing for example, investing in a package deal is much like purchasing an established property, with the big difference that what you’ll be purchasing is a new property.
Because all houses are brand new, you won’t have to worry about maintenance issues for five years at least. This is especially great for investors who are keen on renting out their property as soon as it’s ready. House and lot packages also have additional resale value since their home plans are pre-designed with the intent of complementing the design philosophy of the whole development area.
From a financial standpoint, it is easier to invest in house and land packages than in established properties. You will require less money since you won’t have to spend on stamp duty for the house component of the home and land package you’re interested in purchasing. Stamp duty is charged by states from all real estate sales. Its calculation is dependent on the location and value of a property which means that you will be charged lower taxes with a lower property value.
Additionally, packages come with warranties from developers so in the event that unforeseen incidents arise, you can easily come to the developer for assistance.
The points below illustrate that house and land packages make for better savings in the long run. You will have better support from the developer, as well.