The Pros and Cons of Buying a House and Land Package
Many home buyers in the market are often torn between purchasing a house and land package on a new land estate versus buying an established home in an older suburb.
There are pros and cons to each scenario, and a lot of your decision will come down to personal preference and financial circumstances. This article will go over each situation so you can make a more informed decision about your best options.
New developments in a newly released land estate have significant advantages for home buyers. Here are just a few compelling reasons to consider building your next home in a brand-new suburb.
Unlike new estates of the past, moving to a new suburb does not mean you will have to travel miles out of your way for the weekly grocery shopping, visit the doctor, or do your banking. Modern land estates are developed alongside a supporting business hub, so residents have convenient access to everything they need for day-to-day living, such as schools, entertainment, dining out, transport, and employment opportunities.
Government planning and regulations mean that new land estates are developed with the latest advances in infrastructure. You have access to the fastest NBN broadband speeds, improved traffic planning and parking, and the latest underground gas and electrical network safety standards. Plus, you and your family will have lots of choices for enjoying your weekends in one of the many nearby parks, playgrounds, and green spaces.
New homes come with the latest advances in building techniques and materials. You can be sure you will not have to deal with dangerous products, like asbestos, in your walls and flooring. New buildings are built according to codes that reduce environmental impact on the ecology, including energy-efficient heating and cooling, moisture reduction, and sound dampening.
New homes and appliances come with full warranties, so if anything breaks, you can have it replaced or repaired at no charge. Newly built homes will prevent costly maintenance jobs or repairs from becoming an issue for a long time.
Depending on the age of the house, you could have issues with water heaters, air conditioners, and kitchen appliances that are decades old and likely to break down at any time. It can be challenging to source parts for old equipment, which often means your only option is to install an expensive replacement.
Roofing has a limited life span, so if you are purchasing a property that is a few decades old, you could be up for a new roof or expensive repairs soon that you may not be prepared for financially.
New land estates are often tens of thousands of dollars cheaper than equivalently sized homes in established suburbs. The closer to major cities you get, the higher the prices go, often putting established homes out of reach of the average home buyer. From an investment perspective, lower land prices mean you can achieve higher gains in capital growth and improve rental yields for investors.
You only pay stamp duty on land with a new home, which can be a significant cost saving. Other financial advantages for new home buyers include stamp duty concessions, 5% home loan deposits, and government grants for new homes, in addition to the first home buyers grant.
It’s very rare for home buyers to discover their dream home in an established house. There are almost always things that need to be done, such as a remodel in the bathroom, a new colour scheme, or an upgrade in the kitchen.
Land estate developers have a few masterplans for home buyers to decide on, but the masterplan is not set in stone. You have options for designing a home that is even more in line with your vision.
New homes bought off a masterplan to your liking are more straightforward and affordable to customise. You can choose your colours, appliances, fittings, and placement of said appliances and fittings.
Buying a home, new or established, is a big decision. Looking at all your options will help you make a more informed choice.
Buying an established property is faster than building a new home because you can move in right after the settlement period. New homes generally take a few months to build, which means you could be paying rent on top of a mortgage during some of the construction phases.
Settlement periods can be as few as thirty days, so you may not have to pay rent for as long when purchasing an established home. Still, settlement days can take as long as 120 days, which is a cost you will need to consider.
Older homes require a building inspection before purchase. An inspection could reveal expensive repairs that you may not be willing to pay for. You could reduce your investment by the repair amount, but this is only an estimate. You will still have the inconvenience and expense of dealing with repairs after moving into your new home.
As mentioned above, established homes rarely fit all of a buyer’s needs or desires. The laundry might be an awkward arrangement, there might not be enough room for the fridge you need, windows may not take advantage of natural lighting, or the colour scheme might be outdated or distasteful.
These issues can be complex, expensive, and challenging to rectify, and some changes may not even be possible, depending on the property’s age and the materials used in its construction.
Regardless of how you choose to buy a new home, building new or purchasing an established property will depend on your needs. A house and land package on a new land estate can deliver significant cost savings and provide you with options for creating the perfect home for your family, with the benefit of being surrounded by modern infrastructure. Call today to learn more about how you can get into a brand-new home.
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