All You Need to Know About House and Land Packages
One of the most significant challenges when purchasing a home is that it may be difficult to find a house that suits your tastes. More often than not, buyers will have to compromise or plan for future renovations after buying a pre-built home. A house and land package is an instant solution to people that would want to own custom homes. Typically, the real estate company sells you land and commits to building you a home.
This guide discusses the various considerations you should make when going for a house and land package.
Work With an Experienced Conveyancer
An experienced conveyancer will protect your interests as you make the transaction. The conveyancer's first task is to appraise the property to ensure that it is reasonably priced. He or she will also conduct some background research to ensure the sale will not result in future liabilities. Your conveyancer will also negotiate the selling price and ensure the terms of purchase are in your favour.
Assess the Real Estate Company
The real estate development company selling the house and land package should meet the following criteria:
- The company should have successfully conducted similar projects in the past. Check the reviews of previous clients to know whether the company offers quality services.
- The company should have the financial capability to undertake the project. Otherwise, they could be unable to finish construction works.
- The company should have long term relationships and partnerships with local councils and construction experts such as engineers and certifiers. Remember, they will need construction permits and the input of designers and engineers as they put up your home.
- The company should give guarantees. For example, they should refund your money if they cannot complete the construction works within a specified period.
Understand the Terms of the Package
You must understand the terms of the package. More often than not, the development company will ask you to pay for the land and property separately. It ensures you have adequate time organising your finances. When buying into a strata development, the company could have pre-approved construction plans. If this is the case, ask whether you can make adjustments to the existing plans. In some cases, you could run out of capital before the company finishes the construction works. If this happens, inquire whether you are allowed to sell the property off-plan.
Organise your finances before buying a house and land package. If you do not have ready cash, contact your bank and check whether they are willing to finance the purchase. Remember to negotiate the loan interest and repayment terms.
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