With a House and Land Package in Perth , you’ll have a choice of several home designs and several locations for land – just pick and choose the one that best suits your budget, needs, and lifestyle! Many House and Land packages are part of land estates but if you find a block of land in a suburb that you love, many home builders can create a custom package for you.

Benefits of a House and Land Package

• You can customise the home design to suit your needs – and wants. From the configuration (i.e. 3 bed, 4 bed, 2 bath .. you get the idea!), to the floorplan, to the selections, to the overall style, the home can truly be a reflection of you. You also have the ability to create your dream home design with a flexible floorplan that will see you through all your life stages.
• You have plenty of choice with location – from estates in the latest up-and-coming Perth suburbs to single blocks for a tailored package.
• If you buy within an estate, there are often great amenities available just for your community such as playgrounds, parklands, and primary schools. Estates are also designed to have high walkability scores, so it’s easy to access these amenities on your morning stroll.
• All the hard work of finding the land and then a house design to fit that specific block is done for you!
• There’s often less competition when blocks become available compared to established houses for sale – which means less stress for you.
• A newly constructed home is easier to maintain and will likely have fewer issues than an older established home.
• Building methods today are more energy efficient and sustainable, which saves you money in heating/cooling costs and reduces the carbon footprint of your house.
• Your new home comes with warranties for a variety of aspects including structural, electrical fitouts, plumbing, and flooring to name a few, allowing greater peace of mind.

If you’re thinking that a House and Land package sounds like a great option, it’s time to take a look at your finances. From there, a broker/bank can work with you to determine the loan best suited to you and your circumstances.

Let’s take a closer look at home loans.

What is the Difference Between Common Home Loans vs Construction Home Loans?

Banks and lenders offer three common types of loans for typical home loans.

1. Standard Variable Loan

This is where the interest rate that’s applied to your home loan can change whenever your lender changes the rate. This means your minimum repayments will decrease when interest rates go down, or will increase when rates go up. So whilst you get the benefit of lower repayments during times of low interest rates, the opposite can also occur so be aware and keep your eyes on the market.

2. Fixed Rate Loan

As the name suggests, these loans offer a fixed rate of interest regardless of interest rates changes in the market. These loans are usually offered for the first 1-5 years of the loan and then the home loan rate will switch. Be sure to make a note of what the rate is after the fixed rate period.

3. Split Rate Loan

The split rate loan is a goldilocks scenario where part of the loan is variable, and the other part is fixed.

Construction Home Loan

A house and land package requires a special type of loan. In fact, there are two loans: a standard home loan for the vacant land and a construction loan for the house itself. The loan is set up so that the land is purchased upfront but then you authorise 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.

Special Loan: Keystart Loan

Keystart is a WA Government initiative designed to help get you into your first new home faster by lowering entry costs. Benefits of a Keystart home loan include:

• Minimum deposit of 2% (compared to 5% with major lenders).
• No ‘genuine savings’ are required.
• No Lenders Mortgage Insurance (LMI), saving you thousands (see The jargon page for full explanation).
• Reduced repayments during construction.
• No monthly account fees.
• Home loans are offered to those who have a poor credit rating, defaults, or have declared bankruptcy.

However, the eligibility criteria can be much stricter for Keystart loans so it’s important to speak with a broker to see if you qualify.

Are there any Government Grants for House and Land Packages in Perth?

Absolutely! The Federal and State Governments offer some incredible housing initiatives and concessions to support first-time home buyers and single parents get into a home of their own.

1. The First Home Loan Deposit Scheme (FHLDS) 

The First Home Loan Deposit Scheme (FHLDS) is an Australian Government initiative to support eligible first-time home buyers to purchase their first home sooner. Under FHLDS, eligible first-time buyers can purchase a home with a deposit of as little as 5%. Note that lenders’ criteria apply.

2. Family Home Guarantee (FHG) 

The Family Home Guarantee is an Australian Government initiative that supports eligible single parents, with at least one dependent child, to purchase a home. The Family Home Guarantee can be used to build a new home or purchase an existing home with a deposit of as little as 2%, regardless of whether that single parent is buying their first home or are a previous homeowner.

3. First Home Owners Grant (FHOG) 

The First Home Owner Grant (FHOG) is a one-off $10,000 payment from the WA Government to help you buy or build your brand new home – and that includes House and Land packages.

There are some straightforward FHOG criteria you’ll need to meet and you can read more about it on the WA Government website here.

4. Stamp Duty Concessions

If you’re a first home buyer, you’ll get the bonus benefit of a concession on stamp duty, often known as transfer duty, which is known as the first home owner rate (FHOR). Here are the facts:

• First home buyers don’t pay stamp duty on any home purchased up to the value of $430,000.
• Homes between the sale value of $430,001 and $530,000 receive concessions (reduced amount).
• First home buyers don’t pay on land purchased up to the value of $300,000.
• Land between the sale value of $300,001 and $400,000 receive concessions (reduced amount).
• You must be eligible for the FHOG for this to apply.

For the most up-to-date info on stamp duty and current concession rates, we recommend you visit the WA Government website.

Get Started with an Affordable House and Land Package Today!

There you have it! Everything you need to know about House and Land packages in Perth. New Generation Homes has experienced New Homes Consultants who can take you through all the details of the Federal and State grants and initiatives so you can feel confident in taking the next steps towards purchasing a House and Land package – and starting an amazing new life!

Chat to one of our knowledgeable New Home Consultants on (08) 6555 7548.