Article published 24 November 2020
There’s nothing like a sparkling new home, and right now a swag of financial incentives can be up for grabs when you buy or build a new place. Australians aren’t wasting any time taking advantage of them either – the number of loans for the construction of new homes jumped 27% in September alone1.
If a brand new home is on your wishlist, a house and land package can be a hassle-free and affordable option. We explain the pros and cons to help you enjoy a good buy.
House and land packages can be very affordable
House and land packages come in two varieties. A ‘turnkey’ package typically offers a newly built home on a particular lot – all the buyer has to do is turn the door key and their home is ready to go. Alternatively, a home and land package provides the flexibility to buy vacant land first, then build a home from a set range of builders and designs.
Both options could be a very affordable way to enjoy the benefits of a new home. As a guide, house and land packages in Sydney’s north-west can cost as little as $579,0002. That’s $414,927 below Sydney’s median house value of $993,9273.
You may also be eligible for other savings too. Buying land first and building later provides savings on stamp duty, as duty is only levied on the value of the land. In addition, financial support such as the First Home Owner Grant, is often only available for newly built homes.