6 Questions To Ask When Buying A House And Land Package
Are you thinking of buying a house and land package for your first home?
For most people it is the single biggest investment they will make in their entire life so it pays to be well prepared when buying a house and land package.
You have considered your options and you have decided that purchasing a new home by way of an “off the plan” house and land package is your best option. Good choice.
Here are 6 key questions to ask when talking to prospective suppliers
1. Is it turn key?
A turn key build is one where we you make a small deposit (normally 10%) and do not make any further contribution until the project is complete and is ready for you to move into. Banks prefer this over a construction loan where regular instalments are made as key stages are reached during the life of the build.
2. What is excluded?
Very rarely will you be comparing apples with apples when it comes to house concepts. It is very important to establish what is and isn’t included in the total price you are paying for your new home. For example is landscaping included. What you will typically see is an allowance in the total build price for this particular activity, this is more commonly referred to as a PC (Price Cost) Sum (e.g $10,000).
3. Who is the builder?
Not all builders are created equal. It is crucial to go with a build partner who has weathered financial storms, is reputable and has a track record to support it. So do some research into the track record of the builder and if possible ask to see examples of their work.
4. So you like the house plans, what is the next step?
Sign a sale and purchase agreement for the land component with anywhere from 5-25 working days as due diligence.
The due diligence process includes:
- Agreement of what is and isn’t included in your new home with your builder (if you are working with The House and Land Co they will take care of all this for you).
- Arranging finance, The First Home Buyers Club can help you with this. Your lender will need to see both the sale and purchase and the build contract.
- Getting a lawyer to look over the Sale & Purchase Agreement prior to signing.
Only once you, your lawyer and your lender are happy with all aspects you will go unconditional on the land and sign your fixed price build contract.
5. How long is the build?
The build should typically take around 6 months (including consent and council process) give or take a month or two.
6. Can I make changes to the house plans?
Prior to council consent and during the design phase the answer is yes.
After building consent has been issued in most cases the answer is no other than things such as paint colours. You are able to make some more significant changes by way of a minor variation, for example moving a vanity from one wall to another, but remember these will come at a cost if pipework needs to be moved plus there is now paperwork involved and your builder may charge for this.
If you’re looking into buying a house and land package, The House And Land Co. is here to help guide you through the process.
Get In Touch With Tod Tait from House And Land Co. on 021 336 133 or via the form below:
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November 17, 2017 Blog