6 things you should know before buying a house and land package
It can be stressful when selecting and building a home. Sometimes new home owners are forced to find out the difference between a construction loan and a home loan. New home builders are forced to understand a set of vocabularies such as setbacks, estate covenants and site coverage. You are also stressed on what additional features to include, the cost and time required. Below are six things you should know before buying a house and land package.
1. The type of house and land package
You will find two types of house and land packages. One type is whereby you buy a land and then build your house on it. This option allows you to choose your preferred home design that suits your requirements as well as budget. The second type is whereby you buy a built house on the land of the developer and is ready to move in. This option gives you no freedom to choose your preferred home design.
2. The experience and insurance of the builder
Make sure that the builder has a good reputation and experience in building house and land packages. You should make an effort to look at the builder’s portfolio and ask for additional information if necessary. Take a look at the feedbacks posted online and you can also request for references you can contact to know the builder’s experience. In addition, it is recommended to work with builders who have genuine building insurances.
3. The design options
The home design is one of the most important factors when planning to build a new home. Your developer should provide you with a wide range of home designs for you to choose from. Apart from loving your new home design, you should ensure that the size and layout fit your preferences and also should fit your long term goals.
4. The cost of additional features
Every buyer should look out for what is and what isn’t include in a house and land package. The builder can help you with this issue. You should make an effort to know what is included as standard specification for a certain price before selecting a builder. You should request for a list of inclusions for each design and then select the developer with the highest quality inclusions. Doing this will help you reduce the cost of additional items.
5. Check warranties and guarantees
You should make an effort and find out the warranties will be transferred to you as a buyer and also verify whether the building guarantee will be transferred to you after purchase. It is recommended to request a copy of the guarantee for verification and make sure you are aware of what will be applicable and what won’t be applicable. Look for a solicitor who will advise you on those issues.
6. Confirm the building timeframe
You should find out when the builder will start the buying off the plan process and the time required to complete the whole building process. The reason for knowing the timeframe is that you will most probably be living elsewhere until the build is completed. Typically, a home and land package contract most likely does not include a specific timeframe but you can confirm with your developer to know a rough estimate. The builder can take more time in cases of severe weather conditions or building product not available.