House and Land Packages: What Are These and Are You Eligible?
Are you in the market for a new home in Brisbane? Have you heard about house and land packages but aren’t quite sure how they work? Home and land packages have become increasingly popular post-COVID, although the core demographic seems to have changed. According to one developer who offers land and house deals, there’s been a 40% increase in the number of home upgraders seeking larger houses in more affordable locations.
So, what exactly are land and house packages? What are the benefits of purchasing a house and land together? And are you eligible for a house and land deal?
What Are House and Land Packages?
House and land deals can be an ideal solution for homebuyers looking to build their dream home without the hassle of purchasing land and coordinating with builders. These packages typically include both a piece of land and a newly constructed home, all bundled into one complete package.
With this kind of property purchase, you’re essentially buying both the land and the house from a single developer or builder. This streamlines the homebuying process and often comes with additional perks such as customisable home designs, fixed pricing and potentially lower upfront costs compared to buying an existing home.
What Are the Benefits of House and Land Packages in Brisbane?
House and land packages in Brisbane are a popular choice for investors and home upgraders seeking larger homes in more affordable locations. Land and home packages generally come in a wide variety of shapes and sizes, meaning they can be customised to suit different budgets, design preferences and lifestyle needs.
These deals typically provide great value to buyers, because they offer:
- Access to community amenities, sometimes in new areas being developed.
- A new home warranty.
- Savings on stamp duty.
- Potential access to government grants and incentives.
Are You Eligible for Land and House Packages?
Anyone can buy a house and land deal so long as they have the appropriate finance. Your eligibility for house and land package finance will depend on a range of factors, including:
Your Credit History
Lenders typically use a person’s credit history to determine their creditworthiness. If you have a history of making late payments or even defaulting on loans, then this can make it more difficult to secure finance for a house and land deal.
Income and Employment Stability
Lenders will also take into consideration your income and employment stability. A steady income from stable employment increases your likelihood of loan approval, while irregular income or frequent job changes can create added challenges.
Deposit Size
The size of your deposit will affect your ability to secure finance. Lenders typically require a deposit of at least 10% of the property’s purchase price. However, you’ll need at least a 20% deposit to avoid paying Lenders Mortgage Insurance (LMI). A bigger deposit will also help you to secure better loan terms.
Debt-to-Income Ratio
Lenders will also be interested in your debt-to-income ratio (how much you earn vs how much you already owe). A high debt-to-income ratio means that a significant portion of your income is already committed to debt repayments.
House and Land Packages: Exploring Your Options with North Brisbane Home Loans
If you’re considering a house and land package, then it’s a good idea to start with some expert advice from a local mortgage broker. The team at North Brisbane Home Loans can provide you with professional guidance every step of the way, from exploring available packages to securing financing. When it comes to navigating finance for house and land deals, we’re here to help you make informed decisions and achieve your homeownership goals.
Don’t let uncertainty hold you back from owning your dream home. Contact North Brisbane Home Loans today to learn more about securing finance for house and land packages.
Patrick Cranshaw, a Certified Mortgage Professional for over 21 years, founded North Brisbane Home Loans in 2002. His career began with ANZ Bank in New Zealand, where he progressed over 16 years to a Business Banking role in Virginia. After moving to Brisbane in 2000, Patrick led the QLD market for a home loan agency, helped set up the REMAX Real Estate Finance division, and practiced as a broker.
