As the name suggests, home and land packages merge home and land loans into one package to give an effective way to get the best property that suits your requirements. House and land packages for first home buyers in Melbourne involve the land and home being sold together. You can choose house and land packages at an affordable fixed rate and eliminate the surprise of additional costs. Home and land packages allow clients peace of mind along with cost-effective and easy alternatives to managing location and construction separately.
Overview of a House and Land Package in Melbourne
To enter the real estate market, choosing a house and land package for first home buyers would be the best option. When buying any of these packages, an individual will choose a block of land that may be part of a larger tract of land bought by a developer and subdivided. After that, they will choose from various builders and designs to build the home of their choice.
First home buyers house and land packages in Melbourne tend to be sold at a fixed rate that can vary in style and size of the house, and whether it’s single or multi-storey. They can add various extras, including different types of interior fit-outs.
How do House and Land Packages Work?
When you buy an existing house, you’ll take one home loan with a mortgage attached. By contrast, when you choose a house and land package, you’ll take two loans, generally coming together at a fixed rate. One of these will be a loan for the land itself, on the other hand, the other will be constructed loan that is usually drawn down in various stages. The construction stages can vary based on your builders but typically include such major milestones as when the frame and base of the house are complete, the time of handover, etc. When first home buyers are paying off their construction loan, they’ll only pay interest on the amount that the bank has paid the builder at every stage of construction.
Advantages of House and Land Packages for First Home Buyers in Melbourne
First-home buyers can have various advantages from house and land packages, including possible stamp duty savings, access to first home owners grants or other government incentives, and the opportunity to construct and customise a brand-new house of their own.
- Savings on Stamp Duty
Stamp duty is a payable tax on property purchases. When you purchase a house and land package, the stamp duty will be paid on the land’s value because the land is empty and has not been constructed house on it, thus buying a home in this way could save you money. Additionally, various exemptions and concessions to stamp duty are available to first-time home buyers. These can vary according to different states.
- You may Access First Home Owners Grant
In almost all parts of Australia, the government offers different grants and concessions to first-time home buyers in the form of lump sum payments to help them buy a property. These grants vary from one state to another but are only available for people constructing or buying a brand-new home. It means if you buy a house and land packages in Melbourne as a first home buyer, you may take benefit from the FHOG scheme.
- Chance to Create a House that’s Yours
When you buy a house and land package, you will get a variety of block sizes and home designs to choose from and can choose a combination that matches your requirements and budget. You may be able to choose between various finishes, features, and interior styles and add more options.
- Your New Home will not Need Renovations and Remodelling
Buying an established home can mean that you need additional costs for renovating a home. On the other hand, a newly built home will be completed as per your needs, and as a result, you will not need to renovate it.
The blog highlights information that is required for first-time home buyers who are searching for house and land packages. For an affordable fixed-rate package, you can also get in touch with Home Star Home loans.
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