Is it time for you to consider buying a house and land package?
The answer is a resounding yes! The Australian housing industry is experiencing a unique slowdown. Housing prices are set to be ever low this year. This is something that has happened for the first time in two years, and you should definitely take advantage of the situation.
Now is the time to move and gather data. Start investing because you don’t know when prices will ever get this low again. If you won’t grab this chance, it’s possible that the houses that you can afford now, you may no longer be able to afford in the coming years.
Economists predict that houses are set to go low this year and in the few months of this year. After that, the market is set to bounce back and increase in pricing again. Don’t miss this golden opportunity.
Don’t feel overwhelmed or disheartened if you feel like you don’t have enough funds to buy your own house this year. Multiple developers offer affordable house and land packages, and they are highly affordable alternatives that you could consider. To know more about house and land packages, keep reading. You should duly take notes because the advantages of buying a house and land package will make it easier for you to have your own house and lot.
House and Land Package: What Is It?
House and land packages are ever popular in Australia these days because they offer the easiest, speediest, and best way for a person or a family to own a house.
It is a kind of purchase structure where a client buys both a block of a lot and a fully-constructed home in one go with two separate contracts. The two separate contracts are for the land purchase and the building.
In house and land packages, contracts for the build will be with a construction company, while the contract for the land purchase is with the land vendor. In most cases, the developers themselves are also the builder.
A house and land package is ideal for first-time buyers because availing one will remove the need to contact engineers, architects, contractors, and designers separately.
The home design process is as streamlined as your house, and the lot will already be offered to you in a complete state – fully designed and fully built. You will also have to pay less in stamp duty.
Different House and Land Package Contracts
You have three contract options to choose from if you’d opt for a house and land package:
Your build contract will involve everything that has to do with house construction. It needs to be an industry-standard contract document. Therefore, cross-check it with examples made available by the Housing Industry Association (HIA).
With this assessment, you can ensure that every provision is legitimate and legal. It’s best if you could consult with a law expert.
Fixed Price Build Contract
You should insist on a fixed-price contract if you’re going to opt for a house and land package. This kind of contract will ensure that the amount of price will be the final amount that you need to be made accountable for.
This secures that you will not have to spend on additional costs and hidden costs. It is best if a law expert can check the fine print to secure that the builder cannot go after you for additional costs. This kind of provision is called a rock clause. Try avoiding a rock clause at all times.
Turn-Key Build Contracts
This contract means that your house will be given to you in a completely finished fashion. This means that once the house is given to you, it will be fully completed and ready for occupancy.
This kind of contract will give home-buyers the security that everything they would ever need would already be provided to them upon completion – from floor coverings to the best curtains, air-cons, and other appliances.
Points to Take Note of When Availing of a House and Land Package
You should be careful and strict in choosing your builder. You need to ensure that the builder of your choice is:
- Experienced in the kind of house that you want to build
- Received recommendations from other people
- Capable of showing samples of properties that they built and already finished
- Offers a contract with a liquidated damages clause that binds them to pay for damages for every day that they go beyond the set build period
- Licensed by the government
Be particular with your budget and make your developer commit to transparency. Assert for all expenses to be enlisted.
Disclose that you will not be responsible for hidden fees that were not enlisted in your contract. Opt for a contract that has fixed pricing. Do not sign a contract that comes with a rock clause.
Be particular with the amount of time that you are willing to wait. You should be clear in demanding that your home should be completely finished at such time. Having a liquidated damages clause will help you achieve this.
It is best if you could purchase a block of land that is already registered. This will remove the need for you to consider external factors before proceeding with the construction of your house.