House and Land - Things to consider

Hi All,

I am looking at purchasing my next PPOR (we currently renting). The area we planning to move to has limited housing available within our criteria, which is a 4 bed 2 bath for about $500k. Similar spec properties in the area selling for about $530k – $550k, which is in line with the median house price of about $540k-580k (4 bed). Rentals for the similar properties go for about $500pw, but there is also very limited stock available.

We are exploring the option of a house and land package at a new development in the area. The development consists of about 80 blocks (between 600-800sqm each). The first phase of about 50 blocks was sold and the 2nd phase is going to be released next month. There is one builder for the development and a number of designs to choose from,

The land is expect to go for about $260k and to build a 4 bedroom 2 bathroom is about $240k (turnkey), which keeps us around the $500k mark.

As mentioned, the main reason for considering a new build is that there are no existing homes available in our price range / criteria. The $25k home builders grant and not having to pay stamp duty is also appealing.

One of the many factors for us wanting to move into the area was that our kids will be attending the local school next year, so we will be in the area for many years! (youngest only starting prep next year).

Are there any other things we should consider when looking at a land and home build? Is that $25k home builders guaranteed? (I know we need a signed contract by 31 December)


Thanks in advance.

Cheers,
Robbie

 

How big is the block of land, what suburb?
I would like to make sure the 'turn key' includes everything, driveway, letterbox fencing, etc

 

@Lindsay_W Iv just sent you a pm

 

Consider looking for a corner block or dual-street access.

If I had my time building a PPOR again, I would chose a lot where I could build a granny flat above a detached garage. That works well on corner lots or dual-street access. Essentially a studio-sized dwelling on top of a garage. Like this:



Gives you an option of deriving an income from the property. Of course will depend on zoning and what council allows in your state and council area. Definitely an option to explore.

Dual-key is another option worth considering, where a house is split into two dwellings - often a 3-bedder plus a 2-bedder. You need to do your research on how easy it is to rent the second dwelling. Also need to look into what the council allows.

General idea is to derive an income from the property that helps to pay down the mortgage. The nice thing about the option of dwelling above a detached garage is it probably adds no more than about $30k to $50k to the build cost.

 

Also - try to buy the land independently of the builder and then select your own builder.

 

@wombat777 Thanks for the advice. This particular estate has a builder dedicated to the project so we cant choose our own.