HOW TO IDENTIFY FANTASTIC HOUSE AND LAND PACKAGES

18 September 17

House and land packages from developers in housing estates can have big advantages for buyers. The dwelling is guaranteed new, internal and external fixtures and fittings come with warranties and they make very attractive rental properties for tenants or comfortable owner occupier properties. They’re easier to obtain because you secure a mortgage for the land first and for the build second, breaking up the outlaid financial risk. But as with all major decisions, you need to be thorough in your investigation before selecting a package. By researching these five things and ensuring that the package checks all the boxes, you can be sure your investment is going to be a fruitful one.

 

LOCATION

The property should be located in an area with good infrastructure either already in place or under development. Consider things like transport, public amenities, retail and commercial development and green space. Infrastructure and government spending are great signs of future population growth and this always has a positive impact for the future returns of a property.

 

HOME TYPE  

The property should be located in an area with a healthy balance of owners and renters. If there is a surplus of rental properties, it’s likely that there will be increased competition for securing tenants. By looking for a good level of owner occupiers, the suburb becomes more attractive to tenants and less competition means rental yields are likely to be higher.

 

BUILDER

You need to choose your builder carefully. What certification and registration do they have? What projects have the completed recently? How many years has the company been active? Do they have transparent, honest communication at the point of enquiry? Are they willing to share testimonials of other clients? Look for one who you feel you can trust with the project.

 

FINISHES AND FIXTURES

In the agreement with a builder there will be a set of finishes and fixtures that are guaranteed. Double check what is included and make sure nothing important has been left off the list. Consider all types of materials, appliances and interior elements that you would expect to be included and don’t be afraid to ask about things if they aren’t clear.

 

CASH FLOW AND CAPITAL GROWTH OPPORTUNITY

Based on why you are buying the property you will want to secure something with either good cash flow prospects or with a healthy capital growth projection. Make sure you select a property that aligns with your financial goals, not just your aesthetic wants. You can always ask for a cash flow analysis to determine potential opportunity.