7 benefits of buying a new house and land package

If community, liveability and sustainability are on your property checklist, buying into a new land development could make good sense.

For most people, buying a home is a huge emotional and financial milestone so it’s best to take some time to decide on the best way forward for your family’s circumstances.

Buying a new house and land package or building off the plan can suit a range of households, from first-home buyers looking to get a foot in the door to upgraders seeking more room to move; and downsizers keen on a low maintenance lifestyle.

Here are seven benefits of a new house and land package purchase.

1. Affordability

One of the most desirable aspects of buying into a new land development is the affordability factor. Often opting for a new estate means being able to customise your home to your needs for a cheaper price than buying an established property.

“Potentially the biggest advantage of buying into a new suburb is greater affordability compared to inner-city areas,” Mr Satterley said.

“This comparative affordability can result in greater long term capital growth benefits as your parcel of land appreciates over time at a better rate. Coupled with current record low interest rate, buying into new suburbs in the current market has become a very attractive prospect for many Australians.”

Often opting for a new estate means being able to customise your home to your needs for a cheaper price than buying an established property. Picture: realestate.com.au/buy

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Ms Mackenzie said many new developments offered multiple housing options that suited a variety of budgets. It’s also important to remember that the purchase will cover two loans, one for the land and one for the house construction.

“You can purchase the land and engage your own builder to customise your home to your specific needs and budget or you can choose from a range of house and land packages with pre-determined designs and features, at pre-set prices,” she said.

“A number of government initiatives, such as stamp duty concessions for first home buyers, can also make purchasing or building a home in a new development a more affordable option.”

Mr Saeed said new developments were often sought out by budget-conscious buyers.

“The budget stretches further and there are many more affordable options for the homebuyer, with different home designs and land sizes to choose from,” he said.

“Plus, there can be a six-month gap from when land goes on sale and a deposit is paid to when the land is titled. This can give the purchaser some extra time to save.”

2. Stamp duty savings

Because you are technically only purchasing land, with a separate contract for the construction, your stamp duty payable on the land cost compared to an establish home is much lower. In some states buyers may be exempt from paying stamp duty altogether.

Read more about understanding stamp duty.

3. Community spirit

“A new estate offers a strong sense of community,” said Khurram Saeed, co-founder of Melbourne-based land developer, Resi Ventures.

“Everyone is new to the estate and has common goals of purchasing their dream home, whether they are a first or second home buyer. So, it creates a neighbourly vibe where they look out for each other and the welfare of the estate.”

Communities often host events to bring residents together. Picture: realestate.com.au/buy

See also  How to spot a new upgrader market

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Stephanie Mackenzie, Stockland’s General Manager – Communities Sales, said new developments attracted a community of new residents which helped build authentic grassroots networks.

She said it’s not uncommon for residents to host activities together such as outdoor movie nights and outdoor fitness.

4. Thoughtful design and amenities

With easy access to public transport, shopping centres, schools and recreation a priority for many households, extensive work goes into designing estates to ensure they have the amenities that residents want.

“The land development space is a highly competitive market, and developers are always looking at ways to improve their design and win new purchasers over their competition,” said Satterley chief executive Nigel Satterley.

“This means that to succeed, new developments must be well located and thoughtfully designed, with plenty of parks and amenities.

5. Liveability

Flexible working arrangements mean many people are spending more time at home.

Open space, playgrounds, parks and recreation options have become even more important for a balanced lifestyle.

“Parks and recreation areas including walking and bike paths are a key part of building connected communities as they provide spaces where people can relax, exercise, catch up with neighbours, friends and family, and where the kids can play,” said Mr Satterley.

Playgrounds and parks are commonly built into the design. Picture: realestate.com.au/buy

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Ms Mackenzie said new land developments should cater for residents in all stages of life, and also consider their changing needs.

“New land developments – or master-planned developments – are created with a clear vision of the wants and needs of the entire community, both now and into the future,” Ms Mackenzie said.

“Liveability is boosted through open green spaces, walking and cycling paths, and parks and sporting facilities for all residents and the community to enjoy,” she said.

6. Tax benefits

If you’re an investor you could be up for some serious savings at tax time due to something called depreciation.

Read our guide on claiming depreciation on an investment property.

You’ll also need to get your head around negative gearing, which will also give you savings at tax time as the Australian government currently rewards investors for increasing rental housing stock.

7. Shiny and new

If the thought of maintaining an older home, with all their quirks, brings a shudder down your spine then you can breathe a sigh of relief because new homes require next to no maintenance.

Nothing says luxury like brand new. Picture: Metricon

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Your new home will be covered by building warranties and insurance that are regulated by state government consumer groups and the timeframe in which you’re covered will differ depending on which state you’re in. Be sure to check what you’re covered for before signing the contract.