For many Australians buying their first home, finding the right property for the right price can sometimes feel next to impossible. A house and land package might help to overcome this obstacle by providing an affordable, brand-new home, often requiring a smaller deposit. Here, we look at what’s involved as well as the pros and cons
Compared to other options – such as purchasing an established property or buying land – the key difference of house and land packages is in the financing.
The financing process usually consists of two steps: a mortgage for the land and then a construction loan for building the house. A construction loan is taken out in stages, meaning you ‘draw down’ on a pre-agreed loan amount and only pay interest on the amount needed for each phase of the build. These two loans are usually bundled together, but not always, so it pays to do some research and consider your loan options.
Make sure to review the pros and cons of buying a house and land package as your first home. They can include:
House and land packages can offer many benefits, particularly for first-time home buyers. By doing your homework, checking the options available in your area, and weighing up the pros and cons, you can decide if it’s the right option for your needs.
Any advice provided in this content is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any product.