8 THINGS TO CONSIDER BEFORE BUYING HOUSE AND LAND PACKAGESSeptember 3rd, 2020 Featured
The Victorian State Revenue office has provided a 3 month extension to the previously announced construction commencement date for those seeking to claim the Australian Government’s $25,000 Home builder Grant. This is great news for those who have recently signed a house and land contract or were considering it.
Before you commit to the purchase of a house and land package here are a few things you should consider;
1.What type of House and Land package works for me?
There are 2 options of House and Land packages.
- Off the Plan, where you the vendor is both the landowner and the developer. They have already designed the home and upon settlement the property is move in ready.
- Individual Land and build contracts, whilst this allows you to both choose the design of the home and your preferred land, always make sure that any build contract signed is conditional on securing the appropriate land.
2.Visit the proposed site
It is important to understand the local area where the new dwelling will be constructed and its proximity to surrounding amenities such as shopping centres, public transport and schools. Whilst it may not be possible under current restrictions to physically visit the site you can still visit the area virtually to get a feel for your surroundings.
3.Research the Developer
It is important to do your research on the Developer of the project, things to inquire about and consider include the quality of their previous projects, previous clients reviews and their relevant building experience.
4.Understand the development
Large constructions take time to complete and whilst the project appear a great investment in the beginning things can take a turn for the worst as a consequence of change in market conditions, oversupply of dwellings in the area, financial complications of the developer.
5.Know what you are paying for!
Speak to the agent to determine what your actually paying for, is landscaping included, window furnishings, heating and cooling?etc
6.Completion time frames
When purchasing an off the plan it is important to ask for confirmation of when the build is likely to be completed. Off the plan time frames can vary significantly between projects therefore it is important not to rely on the estimated completion date. To avoid disappointment plan for the project to be delayed 3-6 months as off the plan projects rarely run on time.
7. Make your expectations clear
It is important to discuss your requirements and expectations on the project with the developer. Any specific requirements should be negotiated and written into the contract to avoid future disagreements at completion.
Have your contract reviewed by a Conveyancing Lawyer at Conveyancer.com.au. Our Lawyers will help you understand your obligations under the contract. Our team will let you know your rights and the consequences of withdrawing from the contract if the project does not proceed as expected.