House and land packages are a popular choice for homeowners across Australia because they provide a great lifestyle in communities at a reasonable price. Have you heard of the beautiful town in Australia named Yarrawonga? Over the last 12 months, solely Yarrawonga real estate agents has sold 209 properties with in this single town in Australia. So, these numbers clearly describe the increasing demand of house and land packages all over the country.
This overall scenario might be a great opportunity for professional investors but what about the ones who are planning to buy a house for the first time? As a first home buyer, or even a first-time investor, it might be difficult for you to decide which type of properties are better and whether you should invest in it.
Don’t worry this blog is here to help. We will understand the concept of house and land packages and look at multiple benefits of choosing it as your first-time investment.
What are house and packages?
As the name suggests, a house and land package consist of both a new plot of land and the building of a new dwelling on it. Purchasing a block of land and choosing a house design to be built on it is possible with a house and land package. You can select a piece of land and define the type of house you desire once a developer constructs estate infrastructure on an empty property.
These homes tend to be customisable, so you can design your ideal home by choosing the elements you value most. Alternatively, it is also possible that a developer might match a tract of land with a specific design. The important fact is the land and the house are always sold together in these packages.
How is it different from existing properties?
One common confusion that often arises is how house and land packages are different from already existing properties. There are multiple differences, let’s look at those to understand the two options better-
- Customisation: Home and land packages mostly offer numerous options for personalisation where as in ready properties, the scope is really low and you might have to renovate the area to change any feature.
- Location: You will find ready properties in mostly established or busy areas, but the packages are built in developing areas that are less crowded. Certain packages, like some exclusive lands for sale in Yarrawonga, might give you a rare chance to live closer to nature.
- Energy Efficiency: New built houses in packages are likely to be more energy efficient due to modern technologies, but ready houses might need upgradation to be efficient.
- Cost: The cost of ready-made properties is usually higher; equity is dependent on market conditions, while the initial cost of home and land packages is more affordable; there is a chance for immediate equity.
Top 5 benefits that describe why house and land packages are an excellent first investment
Here are five advantages to help you decide whether you should consider home and land packages as your first investment option-
1. An affordable option
Packages of homes and land may have a fixed price and a comparatively low-price tag, which can be helpful, especially if you are just beginning your real estate investing journey. The best part is a house and land combo in a developing location offers great long-term growth potential.
As the surrounding area develops, the demand of the houses increases. As a result, the affordable house you brought can be sold in much better prices in future.
2. A location full of amenities
Another reason for investing in house and land packages is the intentional creation of these packages in areas with rising communities, scenic views, and necessary utilities. Your home will be conveniently close to neighbourhood facilities if you purchase it in a residential community, which is advantageous whether you plan to live there or rent it out for a living.
To maximise your long-term return on investment, it is important to conduct careful research and make your purchase in a high-growth location with excellent current or projected facilities.
3. Tax Advantages
Compared to an established property, owning a new home gives substantial tax benefits due to the larger depreciation claims. These cost reductions are further enhanced by potential tax benefits, such as the possibility to claim a deduction on the depreciation of your new asset, including the fixtures and fittings.
Keep in mind that it’s essential to consult a tax accountant or financial advisor about what you can and cannot claim.
4. Rent Facilities
You can begin receiving rental income sooner since your new house will be constructed in accordance with the most recent building code requirements and rental standards in your state. You will be able to avoid many of the expensive and time-consuming procedures that come with an older, existing home because it is brand new.
In general, potential tenants are drawn to new homes with modern finishes. Your cash flow will improve as a result of having more options for tenants and receiving greater rent.
5. Maintenance Savings
You will save money on maintenance because your newly constructed property will come with guarantees on the structure and fixtures. The house and land package offer everything that is best fitted for the modern requirements. It means you won’t have to upgrade or renovate soon.
Additionally, repairs should be less expensive than they may be for an older home. So, all these facilities will save a lot of your maintenance cost and make it an ideal first investment option.
Final Words
Purchasing a home and land bundle might provide you with a great deal of freedom to construct the house of your dreams. As we have discussed all the details of these packages and reflected the top benefits, now it’s your turn to make your first investment decision. Remember, with the right real estate agent as your partner, you can get exclusive house and land packages and make your first investment a successful one.
