A home and land package is an excellent way for new first time home builders to enter the property marketplace, offering desirable pricing on off-plan homes at a time where the property is at its all-time highest in valuation history. Off-plan homes are those that their builder or developer has not yet sold. Under this category are properties that have either been contracted to the market by a broker or developer or sold directly by a builder to a licensed real estate agent. They come in various styles and sizes and offer various facilities such as custom-built kitchens and luxury bathrooms.
The home and land packages Adelaide will typically include a considerable amount of vacant land that developers have bought to develop it into a profitable real estate venture. Developed land is known as ‘infill’ and will be perfect for developers looking to ‘fill in’ areas where there is currently very little development.
The benefits to buyers of these types of home and land packages Adelaide are many. Firstly, they give the purchaser a completely hassle-free opportunity to purchase a brand new home without involvement in the building process. The purchaser will receive an entire written contract from the developer stating that they are buying the home, land and any associated assets, such as building and furnishing. At that time, the purchaser will pay the total purchase price upfront, with no interest or capital gains charges to be paid. It eliminates the need for a builder to find a buyer, fund the construction project, pay suppliers and obtain necessary building permits, all of which can take months or even years. Creating these new homes also often creates a residual income for the builder because many sell for a significant profit. The additional income from selling new homes comes through the increased value of the properties held onto by the builder and through interest and rental returns on the ‘disposable assets’ that the builder develops on the property.
Although there are some disadvantages to purchasing land packages, most buyers find them a sound investment. In general, buyers feel more at ease when purchasing from a reputable and licensed real estate brokerage firm instead of buying from independent agents or individual home and land vendors. These firms have extensive experience dealing with the financial and legal issues involved in purchasing homes and real estate, making them well-versed and knowledgeable about the process. Some buyers also feel that a large brokerage firm offers a better chance of finding the perfect property since larger brokerage firms have access to more properties and a more significant number of investors and lenders.
Unlike purchasing through an established home builder, purchasing a home and land package from a private real estate agent requires less research and is often less costly. Since the main focus of an agent is to sell their listings, they typically only have existing listings to draw from when considering a specific home or land package. It can mean that some sellers’ information may be inaccurate or outdated, which significantly increases the buyers’ chances of finding the home of their dreams. In addition, an agent will usually only work with buyers with their financial affairs in order, which ensures that only buyers with stable financial histories are considered. Lastly, in comparison to purchasing through an established home builder, a real estate broker generally only charges a flat fee, which is already less than the cost of a one-time construction fee. Therefore, buyers can save thousands of dollars by purchasing through an established professional.