Buying a house is a significant financial investment, and it can take considerable time to save for a deposit on the dream home. A more affordable way to enter the property market is to buy a house and land package

There are two options with house and land packages. The first option is to purchase the land before the house is built then work with a builder to design your dream home. The second option involves buying a ready-built home that is ready to be moved into straight away.


Know the upfront costs

House and land packages are often more affordable than buying an already established home, making them a good option for first-time buyers. 

A house and land package is made up of two contracts, to secure your land as well as your home. This allows you to know the upfront costs straight away, making it easier to determine if it's within your budget. 

If you’re wanting to build your home, the financial process typically involves purchasing land, then paying for a builder to begin construction. A house and land package is displayed with a single price, which includes the land price as well as the construction costs.

Your builder will provide a quote upfront, as well as a list of inclusions. Make sure you understand what is not included and may be considered an extra expense. This will help prevent you from going over budget and being caught out by extra costs. 

During construction, it’s also a good idea to keep up to date with the progress, so you know if there are any delays or issues that will add to the overall cost. 

Compared with many established homes on the property market, a new house and land package generally requires little maintenance, so you won’t have to be concerned about costly renovations before moving in. 

Location affects affordability

Property prices vary from suburb to suburb, and can greatly affect what type of house you’re able to afford. 

Consider your budget when looking at locations you’d like to live in, you need to be realistic about what you can afford. This may mean being more flexible about where you live in. You may need to broaden your search and consider suburbs slightly further away, or those that are slightly less sought after. 

House and land packages in Clyde North provide a great opportunity for first home buyers. This area can be more affordable to buy into, while still offering a convenient way of living, with many essential amenities close by. 


Choose a design that suits your budget

To be able to afford a house and land package you should consider the different types of packages available. Different developers will sell a range of different home design options, home sizes and land sizes. 

It’s important to work out what fits your budget, to help you find the right house and land package for you. 

You can visit a display homes and new estates in Clyde North to see what home designs are out there. You can share interior and exterior options you like with your builder when designing your home. They can discuss with you what design options will fit within your budget and may be able to work with you to find alternative options where necessary. 

Remember, while you shouldn’t build a house you can’t afford, don’t be cheap with fittings and fixtures that will just need to be replaced later, as this could end up costing you more in the long run. Buy the best quality you can afford to ensure longevity of your home.

Potential ways you could save money

Buying a house is expensive, but when buying a house and land package, there are numerous ways you could save money. 

Buying a house and land package comes with the potential for reduced stamp duty. Developers usually require a 10 per cent deposit when buying the land, but an advantage is that when buying a house and land package you will only have to pay stamp duty on the purchase of the land. This can save you a lot of money. Look at land releases in Clyde North to find a suitable block of land. 

You can also use a construction loan to build your home. Construction loans can allow you to stagger your payments while your home is being built, saving interest along the way.

The other option is to purchase a new home already built on the developers block. You may only need a five per cent deposit, and this type of property does not require any maintenance. 

If you’re a first-time home buyer some states and territories offer grants or stamp duty discounts for building a new home rather than buying an existing property.

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