7 Essential Questions To Ask When Considering House & Land Packages
We sat down with Ian Horne, General Manager of Land Development at Connekt Urban Projects, to pick his brain about the questions you should be asking when considering House & Land Packages within a land development you are interested in. We came away with 7 key questions that we think everyone who is doing their research, should have answered!
Who is the land developer?
When you consider buying into a new land subdivision it’s important to know who the developer is and to consider a number of key questions: Do they have a proven history and financial capability to deliver the infrastructure, amenities, open space, recreational facilities, landscaping etc to the quality they are promising and over what time frames? Connekt only partner with developers who can deliver and the Village Green is a perfect example of this. This boutique project is being developed by Tony Baulderstone and a hand selected consulting team, who collectively have over 20 years’ experience in delivering successful land subdivisions.
Is the land already titled and infrastructure work underway or is the developer relying on obtaining a number of presales before they can fund the infrastructure?
The Village Green developers are delivering the infrastructure, roads, power, gas, water, sewer, including benching and retaining on some allotments without relying on pre-sales. The development is on schedule to be fully constructed by January 2017. The process of creating individual titles is also well underway and they are expected to be issued by Feb/March 2017. This means that anyone buying at The Village Green will not have to wait for a prolonged period to start construction of their new home.
House and Land Packages - Can you build that exact house on that particular block of land and in that particular development?
Most developments have encumbrances and / or design guidelines that protect buyers investments and ensure the quality and consistency of homes built there. However, many land developments allow builders to advertise House and Land Packages that do not meet these guidelines and hence cannot be built in that particular development. Connekt works closely with a select number of builders to ensure that all the homes advertised, meet the design guidelines and can be built at The Village Green. (There is also opportunity to choose an allotment in The Village Green and use any builder, providing the Design Guidelines are met).
What’s actually included in House and Land Package?
Whilst the land in some developments is owned by the builder, in most cases the builder and the developer are separate, so buying a House and Land package means contracting the land from the developer and then entering into a separate build contract with the builder. The land portion of the package price is usually fixed, however the build component can vary. Some of the packages at The Village Green are offered as fixed price (Simonds) whereas others are not fixed. It is important that you understand exactly what is and is not included in the build so you can properly budget.
Is there a choice of packages?
It’s important to find a development where there is choice in packages on different allotments, particularly in terms of orientation. Some larger developments surprisingly offer a very limited choice of lot types, sizes and orientations and often very similar house designs. Check out The Village Green for the variety it offers.
Is there a build time limit?
Do people have to start building within a certain time-frame? The Village Green encumbrance states that construction must commence within 24 months of settling on the land and as the land is selling quickly it means buyers won’t be living in a building site for an extended period.
Is it a good investment?
If it’s a family home you are building to live in, this may not seem like a relevant question but it’s good to know that by buying into the correct area, you not only have a great place to live, you are also potentially creating an asset that will grow in value. Factors to consider include future investment in the area, roads, schools, infrastructure. Also consider the size of the development – smaller developments tend to appreciate more than larger ones. Simple supply and demand. With only 21 lots available in an area that is always in demand we expect to see strong growth.
There you have it! You may have questions after reading all of the above and we are ready to answer them all - contact our agent at 1300 08 08 33. Stay tuned for more information that we think you will need at every step of the decision making process when buying your new home or investment!