Benefits of Investing In a House & Land Package
In the last decade, there’s an increase in the population across Sydney. Also, detached houses have dropped in number. Thus, it’s becoming more challenging to find vacant land in prime locations.
Consequently, most people seeking to own homes are going for more affordable options such as a house & land package. Here’re the key benefits of investing in this type of property.
1. It is more affordable than a customised home
The package is offered at an attractive and fixed price for both the house and the land. The package often includes a local architect and builder.
This means that you can find the package at a more attractive rate than buying a land separately and build a home later on.
Overall, the package offers more value than investing in an already built house within the same locality. After all, you’ll be buying a newly built house with modern fixtures and fittings.
On the contrary, buying an existing house will likely cost you more to do renovations or to upgrade to preferred fixtures and fittings.
2. You can choose your preferred design
For many investors and owner-occupiers, investing in this package means that the buyer will be free to choose the design that suits their preferences and needs on a fairly large piece of land. In simpler terms, this package comprises a land and a newly-built house.
Some individuals choose to buy land from developers and agents and search for a builder to build the kind of home they want. However, this process often takes a lot of time. Also, it’s costlier than investing in a house & land package.
3. You may benefit from deductions or grants
Some buyers often get lucky to benefit financially from stamp duty exemptions and first homeowner’s grant when investing in this package.
In NSW, the only stamp duty you’ll pay is for the piece of land. Eligible first-time homebuyers investing in a vacant piece of land for residential use will enjoy free stamp duty for land valued at a maximum of $350k.
Also, they’ll enjoy stamp duty exceptions for a vacant piece of land valued in the range of $350k to $450k.
A $10k grant is also offered to first homeowners for constructing a new house with a maximum value of $750k for both the house and the land.
You can also claim tax deductions for a newly built house as it may depreciate faster than an older house.
4. You get a ready home
With this package, you can choose a turnkey package such that you can move into the home as soon as you buy the package.
The most basic inclusions such as taps, toilets, tubs, bathrooms, cooktop, water heater, fences, and driveway among others are already in place.
Considering the commitment of the NSW state government to improve the affordability of housing in Sydney, investing in a house & land package will allow you to own a home at an affordable rate in rapidly developing locations.