If you are at the point where you are finally ready to purchase land or a home, you might wonder what the best deal is. Should you purchase a house already built, build your own or purchase a house and land package to get the best deal? What is the cheapest route?
What are the Options for House and Land Packages?
There are two main varieties when it comes to house and land packages, those being the turnkey package and the house and land package options. The turnkey package is where a potential homeowner can purchase a home that has been newly built and simply move in. They can choose ahead of time the various options such as paint colours, interior finishing, and exterior features. All the buyers need to do is wait for the home to be completed and then it is ready for them, so they just move in on completion.
The home and land package are a different option. This option provides you with more flexibility in that you can carefully choose the land that you want to build on. Home and land packages usually have several designs to choose from as you work with any of the preselected builders on the site to complete your home.
Either of these options offer an affordable way for home buyers to get into the home market. It is often cheaper to buy land and build a home on it instead of purchasing a property that already has a home on it. Building a home comes with its own set of challenges though including lengthy waiting periods for construction and limited options for vacant land to be purchased.
Land and Building Cost Estimation
The first step that you should consider is estimating the cost of the bare land. You need to factor in stamp duty and any discounts that may apply to you if you are first time home buyer. Once you have determined the cost of the land, you will need to determine the average cost for home construction per square meter of finished home.
When you determine these costs, it is a lot less expensive than buying a home that is already built. Building a home includes the cost of the land and often includes first time home buyer discounts as well as the stamp duty. Finishing costs for new construction can be costly depending on what part of the country you live in, and the availability of the skilled labour required to complete the build.
Build or Buy?
When it come to the decision to build or to buy, the decision is about more than just cost. It also has much to do with the type of home you want. An already built home can be beneficial because it is located near amenities and public transportation. There could be a certain character and charm included with the home that does not come with a home that is not yet built. When you build your own home you can make it as custom as you like and have the layout that you prefer. You can design the home to suit your personal tastes, needs and wants.
Main Benefits of Building a Home
- Customized – you choose the materials you want and fixtures that suit personal tastes and requirements.
- Funding in stages – you can borrow in stages instead of receiving a lump sum which allows you to be able to pay it back.
- New wiring and plumbing – you won’t have to upgrade old wiring and plumbing because it is newly installed, so you get the benefit of the latest technologies and materials.
- Contractor – you can choose the contractor you like unless they have been predetermined by the seller of the land.
Take Steps for Pre-Approval
If you are planning to purchase a land and home package, then you should take steps to get preapproved for a mortgage. The reason is that you will know exactly how much money you must spend. You can make more informed decisions on the options inside of your home including upgrades and extras.
There are many advantages to purchasing a land and home package. Having your own home built for you is a rewarding experience as you can choose how the home is customized to suit you and your family. When you purchase a home that has already been built, it will usually need to be inspected and there may be expensive upgrades or repairs needed. When you build your own home, everything is new, and you will not encounter any unexpected expenses such as failing appliances. Building your own home means you can choose the location, the size of the land parcel and the size of the home to be built.