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What is a House and Land Package?

Posted 21 June 2022

The Lowdown on House and Land Packages

When it comes to buying a home, the options can feel overwhelming. Should you buy an established but possibly older home that may have problems? Should you build new? And how do you find the land to build on? Do you get a home loan for the land and then the house? And - 

Hold up. 

If these questions are causing heart palpitations, a House and Land package might just be the ticket for you. All the legwork is done so all you need to do is think about your in-vogue interior selections and the incredible new life you'll soon be living.

What is a House and Land Package?

A House and Land package is where a home builder (like us!) bundles land and a new home into one inspiring package. It can be a much simpler and stress-free process than going about it on your own, finding the right block, and then getting a home design to fit the land.

With a House and Land package you'll have a choice of several home designs and several locations for land - just pick and choose the one that best suits your needs and lifestyle! Many House and Land packages are part of estates (and FYI, New Generation Homes have cherry-picked estates in thriving new communities).

Where Can you Buy House and Land Packages?

You may have noticed that House and Land packages are mainly offered within estates. Estates are often targeted toward specific buyers - usually by age and/or lifestyle. The amenities within an estate will give you a good idea of the types of people living there. For example, estates with a primary school and playground will attract young families or those thinking about starting a family.

There are also other House and Land package options outside of estates. Urban infill development can present some great House and Land package opportunities (think duplexes or triplexes), although these block sizes can sometimes be smaller than those offered within an estate. Furthermore, if you find a block of land you simply love, many home builders can create a custom house and land package and will work with you to design a home to fit.

New Generation Homes House and Land packages are available in a huge range of suburbs across Perth. Read through our handy quick-fire facts about each of Perth Metropolitan's up-and-coming suburbs below to help you find the perfect area to begin your amazing new life.

How do I buy a House and Land package?

First, you might need to deep dive into your personal finances. Understanding your current financial situation will clarify any budgeting decisions that need to be made in order to bring your new dream home to life. Start by pulling together the below info;

➕ your current salary or income as well as a partner's (if you have one) salary. This gives you your total household income;

➕ how much money do you have in savings which you plan on contributing towards your home deposit, be it small or large, you'll be pleasantly surprised at your options;

➖ your monthly costs- think rent, groceries electricity, and gas, fuel, phone bills etc;

➖ your current debts - loans, credit cards, buy-now-pay-later applications (i.e. AfterPay), and any assets which cost you;

➖ ongoing direct debits, such as the gym, Netflix, and any other subscriptions;

➖ any other expenses like car registration, insurance fees, or items which occur throughout the year;

Once you understand your finances a little better, you can take the next step which is usually chatting with a bank or finance broker. Often, new home builders will have a finance broker they work with closely which can be a big bonus as it means there are communications and working efficiencies already in place.

A broker/bank will work with you to determine the home loan best suited to you and your circumstances and advise on any government assistance, like first home buyer schemes,  to which you are entitled.

How do Home Loans Work for House and Land packages?

A house and land package requires a special type of loan. In fact, there are two loans: one home loan for the land and a construction loan for the house. The home loan is set up so that the vacant land is purchased upfront but then you authorize the release lump sum payments as construction milestones are reached. Your repayments on the house will be interest only until the build is finished which helps with your cash flow during your new home build.

Once construction is complete, your full mortgage will kick in and you'll start making principal and interest repayments. New Generation Homes' in-house broker, Westgate Finance, has set up thousands of House and Land loans and you'll get the benefit of smooth, transparent communications through our existing business relationship.

If you've made it this far, we think a House and Land package might just be the option for you. Why not chat to one of our knowledgeable New Home Consultants on 6555 7548 or fill out the form below. We want you to feel confident in your new home decisions and as you progress in your new build journey, we'll be with you every step of the way.

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