Nowadays, many people choose house and land packages because of several reasons. These packages are more affordable than the option of buying a ready home. Apart from that, the homeowners can also get the same location to build a new home. These packages also include less stamp duty.
Many homeowners do not know about the process in which house and land packages work. In this blog, you will know how house and land packages work.
Meaning of House and Land Packages
House and land package is the dealing in which you have to buy land from a developer and then hiring a builder for constructing the home. Land developers and builders work as a team to develop house and land packages. This is the main reason that house and land packages have fixed prices. There are no additional costs in these packages. You can also choose the land first and then hire the builder to construct a home on the land.
Difference Between House and Land Package and Buying a Ready Home
There are many differences between house and land packages and ready homes. You have to borrow a mortgage loan to buy a ready home. On the other hand, buying a house and land package involves 2 types of loans. They are the mortgage loan and construction loan for constructing your home. Let us discuss both types of loans in detail:
1. Mortgage Loan on Land
You have to begin paying installments for your land every month after getting ownership of the land. At the first stage, you have to pay stamp duty on the land until the home is built on the land. Under some circumstances, you may also get a concession or exemption from paying stamp duty.
2. Construction Loan
This loan is paid in 5 to 6 stages of construction. The bank pays the amount to the builder and you have to pay interest to the bank on the amount paid by it. A construction loan is divided into 6 categories such as:
- Deposit of 3% excluding initial deposits paid
- The base of 17%
- The frame is about 20%
- Lock up of 25%
- Fix charge is about 20%
- At the end of the project, you have to pay about 15% of the amount
Why is Buying a House and Land Package a Better Option?
These days, the option of house and land package is becoming popular among the homeowners. There are many reasons for the increasing demand for house and land package such as:
- The decrease in stamp duty.
- Same location for building the home.
- You can give a personal touch to the home with your favorite designs.
- Options are available as per the need and budget.
- You can get many customized designs and beautiful colors for each room of the home.
- It also gives comfort to constructing facilities such as a pool, plant area, and gym, and so on.
How much time does it take to build a home in-house and land package?
The time required to build a home in-house and land package is the same as the time required in constructing the other homes. The average time is about 12 months in constructing a home in house and land package. It differs according to the type of designs, floor plans, size of the home, and availability of materials, and so on.
How to Contact the Builder in Your Area?
There are many land developers and builders in your area that offer reasonable houses and land packages. You can use Google, Yahoo, and other search engines to find the best custom builders in Melbourne West to buy house and land packages.