Are you trying to decide if you should buy a house and land package or if you should buy off the plan?
When you are trying to decide, it may come down to your circumstances regarding the better option for you.
Here are the key differences:
Contract types
House and land – 2 contracts, one for the land and one for the builder to construct your house
Off the plan – 1 contract with the developer
After you sign the contract
House and land – You own the land as soon as the contracts are signed
Off the plan – You own nothing until the building is complete
Deposit amounts
House and land – Could be as low as $1000
Off the plan – 5% to 10% deposit is required
How much flexibility is there
House and land – Generally, with a house and land package, you will have far more choices to personalise your home
Off the plan – You may have the ability to make some changes, and it will just depend on the developer.
Settlement process
House and land – Once construction is complete
Off the plan – Within two weeks of completion
Mortgage payments
House and land – Generally, you start paying interest payments on the land as soon as the land settlement occurs. Then as payments to the build occur, your interest payments continue. Once your home is handed over, you begin paying your full mortgage payments.
Off the plan – Once the construction is complete/settlement, your payments will be due.
Stamp Duty
This varies from state to state in Australia, and it also depends on what each government is offering, for example, if you are a first home buyer.
When you are ready to purchase your next property, we look forward to hearing from you. Nicola – Select Conveyancing