As long ago as 2012, you were already keen on the thought of purchasing a home. Back then, the median house price was set at $475,000. In the end, though, you still hesitated and decided it was safer to keep your money and wait until something better came along. By 2017, a similar house was already priced at $555,788 – not an extremely significant price jump. Just like before, you decided to hold on to your money and wait for a better deal. But by the time 2019 came, you could no longer find the perfect house and land in the neighbourhood you’d always envisioned yourself to be living in for the long term.
Undoubtedly, making a decision to purchase the perfect block of land for your dream home is a monumental undertaking. No other type of investment requires as much reflection and commitment as finding the perfect home that suits your family and fits your budget. Buying a home not only indicates your level of financial independence but also gives you a sense of security and ownership of a land estate.
And now that you’ve firmly resolved to purchase property and have even gone on to inspect various house and land packages, and a number of display homes, you’ve never been more sure of the next step to take. To help you quell any doubts or fears that might make you hesitate again, we’ve listed seven reasons why you should buy a house and land now.
1. You can benefit from significant savings.
Eligible first homebuyers have access to government grants, incentives and concessions that are designed to make the acquisition of property an easier undertaking. A good example of this is the First Home Loan Deposit Scheme, which is an initiative of the Australian Government.
You can also save a lot on stamp duties involving house and land packages. This could mean savings of as much as $8,000 to $10,000 in stamp duty based on a typical home and land package. The reason behind this is that the stamp duty involves only the land component (as the house is yet to be built), unlike in the case of established homes that attract stamp duty tax applying to both the land and house components. This is already a big saving and a major reduction in your upfront costs.
2. You can select your block and customise your home design.
Prospective homebuilders can select from a range of floor plans and home designs depending on the house and land package they are after. This means that you won’t be restricted in making your home a true reflection of your style and personality.
If you’re planning to rent out your property, you don’t need to settle for what’s on offer, too. You can build an investment property that’s attractive to your target demographic. For example, if you want to attract bigger families, you can have your property designed to accommodate four or more bedrooms and several bathrooms.
You can also include elements of a home that’ll make your property highly marketable to your target tenants, such as:
- Solar panels for energy efficiency and lower utility bills
- Outdoor elements for entertainment and relaxation such as a patio, a swimming pool and deck, etc.
- Landscaping that’s designed to be low maintenance
- Native drought-resistant plants
- Durable finishes
If you find good tenants for your property, you can count on a continuous, stable cash flow that you can use to cover future maintenance and repair costs, add to your mortgage payments and set aside as savings.
3. You can avail of tax deductions.
With house and land packages, you can claim investment tax breaks or tax deductions for depreciable assets covering construction expenses, fixtures and fittings, and more. You can ask a quantity surveyor to supply a detailed report documenting the amount of depreciation you can claim every year. And with the help of an experienced accountant who can implement your depreciation schedule, you’ll be surprised to know how much money you can save year after year – all because you chose to invest in a house and land package instead of an existing property.
4. You end up with a better quality property.
House and land packages are among the safest real estate investments because newly constructed homes always come with a builder’s warranty. With an extensive warranty, the building itself and the fittings and fixtures are covered. So if you choose to have a duplex property, your chosen duplex builder will definitely provide a guarantee for the same.
5. There would be minimal maintenance and repair costs.
Unlike buying an existing residential property where you may need to spend on extensive repair or renovation work, there’s no such thing with house and land packages. With an old home, you also need to be prepared for long-term maintenance costs. You can avoid this scenario with house and land packages because new homes are built in accordance with strict building quality standards.
6. You enjoy the pride of ownership.
Owning a home is on everyone’s checklist of major life goals. Having your own place to live is a source of personal pride and gives you a sense of accomplishment. If you’re single, it can also symbolise your independence. If you have a family, it will provide you with a sense of stability and security. It will also become part of your legacy to your children.
7. Land is a limited, valuable resource.
Developers may be in the business of building more houses or residential buildings, but the available land is limited. This makes investing in a house and land package an important financial decision. With land being an extremely valuable and finite resource, it is one asset in the world that you should hold on to as owning a piece of it is financially advantageous – whether you use it now or in the future.
Invest in a house and land package today
Whether you plan to live in your property or rent it out, investing in a house and land package is an advantageous way to reach your objective. There is a wide range of house and land packages on offer that you can purchase and design using your preferred fixtures and finishes.
Select a package to suit your investment goals and make your dreams come true.
