How to Buy House and Land Package

So, you are in the market for purchasing a house and land package. If you’re an investor you will be looking at return on investment as well as suburb growth. It is always a good idea to do some research first on suburbs, make sure that you look at the last 10 years of statistics […]

How to Buy House and Land Package

So, you are in the market for purchasing a house and land package. If you’re an investor you will be looking at return on investment as well as suburb growth. It is always a good idea to do some research first on suburbs, make sure that you look at the last 10 years of statistics as some suburbs maybe volatile. Gather as much information as possible so you can make an informed decision. Look into the growth of the suburb and see what new infrastructures are being done, this would give you a good indication on the future of the suburb in question. Make sure your near schools, shops, hospitals, and transportation.

The first thing to determine would be your budget, as your budget will determine where you can buy! So, before you start hunting and spending lots of your valuable time, it might be worth speaking to a mortgage broker first. Nothing worse than spending time finding the right property, only to be told you cannot borrow the money.

As an investor you may decide you want to get more on your return (ROI), you can do this by purchasing a dual occupancy as you may get at least 2% more than a single dwelling. However, when it comes to on selling your audience will not be as high, but then you only need one buyer!

There are 2 kind of contracts when you buy a house and land package, one is a single contract and the other is a 2 contract. If you are buying from a SMSF, then you will need to purchase with a single contract. This means the builder covers the cost of the build and you purchase when complete. In such a hot market you may find it extremely hard to find a single contract, however, does not mean that it is not impossible, but most probably not the area that you are after. With a 2-part contract, which is more common you will purchase the land then as the builder builds there are 6 drawdown payments as the builder progresses with the build.

Make sure with the package you are purchasing that the land is registered or has a registered date, as you do not want to be waiting too long before they start to build.

Remember investing in a house and land package you will get the benefits of depreciation value but remember it is always good be in this investment for the long haul, so keep hold and try not to sell within 5 years.

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