Is a House & Land Package Actually Right For You?
In the journey of homeownership, one of the pivotal decisions you will make is choosing between purchasing a house and land package or building on your own piece of land.
Both paths lead to the destination of owning your dream home — they’re just different ways to get there. House and land packages have risen in popularity for a multitude of reasons, but they're not without their drawbacks.
In this blog, we'll explore the advantages and disadvantages of house and land packages to help you determine if this route to homeownership is the right one for you.
What are house and land packages?
Before we weigh up the pros and cons, it's crucial to have a clear understanding of what a house and land package actually involves.
At its core, a house and land package is a comprehensive deal offered by builders, like Sherridon Homes, that includes both the land on which your new home will sit and the construction of the house itself.
This package deal simplifies the process of buying a home by consolidating the purchase into a single contract. There are typically two types of house and land packages:
Fixed-price packages
These are often the most straightforward and appealing to first-time buyers.
With a fixed price package, the cost of both the land and the build is agreed upon upfront. This type of package offers peace of mind, ensuring that the price quoted is the price you pay, barring any major changes to your chosen design or unexpected site costs.
Turnkey packages
Turnkey packages go a step further by delivering a home that is ready to live in from the moment you receive the keys. This means that all interior and exterior finishes, landscaping, and sometimes even window treatments and flooring are included.
For buyers looking to move into a completely finished home without the hassle of managing these details themselves, turnkey packages offer an attractive solution.
Custom packages
While not as common, some builders offer custom house and land packages. These allow buyers to have a more significant say in the design and features of their new home, catering to those with specific needs or desires that standard packages might not fully satisfy.
What is the role of the developer or homebuilder in house and land packages?
Developers and homebuilders play a crucial role in the creation of house and land packages.
They purchase large tracts of land, divide them into individual lots, and sometimes partner with builders to construct homes on these lots. This partnership between builders and developers is what makes house and land packages possible, offering a streamlined process for the buyer.
Photo by Merrifield
The benefits of dealing with one entity
One of the key advantages of opting for a house and land package is the simplicity of dealing with a single entity.
Rather than coordinating between a land seller, a builder, council for permits, and various contractors, the buyer interacts primarily with the builder or developer. This not only simplifies communication but also reduces the administrative burden on the buyer, making the path to homeownership smoother and more accessible.
What are the pros of house and land packages?
Simplified buying process
One of the most appealing aspects of house and land packages is the simplicity it brings to the home-buying process.
Choosing a package deal means dealing with fewer parties, which can significantly reduce the stress and complexity involved in home construction.
Cost efficiency
Often, buying a house and land package can be more cost-effective than purchasing land and building separately. Builders can purchase land at a reduced cost due to bulk buying, and pass these savings onto the buyer.
Customisation
While house and land packages offer pre-designed homes, there's still room for personalisation. Buyers can select finishes, materials, and sometimes even alter floor plans to suit their tastes and needs.
Turnkey convenience
Many house and land packages are sold as turnkey products, meaning they come fully finished and ready to move into.
This includes everything from landscaping to interior fittings, offering ultimate convenience for buyers.
What are the cons of house and land packages?
Location limitations
The locations of house and land packages are restricted to where the builder has acquired land. This may limit buyers who have a specific suburb or area in mind.
Less customisation than a custom build
While some customisation is possible, there are limits compared to building a custom home from scratch. You might find the range of choices in designs and finishes restrictive if you have very specific ideas.
Potential for hidden costs
It’s important to carefully review what’s included in your package.
Sometimes, what you see in the display homes might not be included in the standard package, which leads to additional costs for upgrades.
Resale considerations
Homes in developments with many similar designs can sometimes be harder to sell or may not appreciate in value as much as more unique properties, particularly in the short term.
Looking to buy a house and land package?
House and land packages offer a straightforward path to homeownership, blending convenience with the excitement of building a new home. However, they may not suit everyone's needs or preferences.
When considering a house and land package, think about what aspects of home buying and building are most important to you. Is it the customisation, location, convenience, or cost?
As you ponder the path that best suits your journey to homeownership, we invite you to explore the possibilities with Sherridon Homes. Visit our House and Land packages page to discover the options available and find the perfect fit for your dream home aspirations.
