Investing in a House and Land Package

Published On: April 17, 20181 Comment on Investing in a House and Land PackageTags: Last Updated: February 13, 20243.2 min read

Are you looking to upgrade your home? Maybe you are looking to move to a new area in your country? If so, you need to be aware of the benefits and takeaways of purchasing a house and land package. What is a house and land package though? Well, there are really two ways to purchase a new home. Buy the land and then build on that land later with a construction loan. The other option is to buy a turnkey home where the developers have purchased the property, built a home, and then sell you the house and land bundled together with a regular mortgage payment.

key with house

Keep reading to discover the information you need to know before investing in a house and land package.


One of the most vital aspects to know when looking at house and land packages is to understand the funding. When you buy a house, you can finance the entire thing. However, when you buy the land first and build later, you have to obtain the appropriate financing for the land. Usually, this process takes two loans. The land purchase requires a regular mortgage loan, while the building of the structure requires a special construction loan. This is the primary difference between the two types of packages when purchasing a home.


Another essential element when deciding to invest in a house and land package is the location you will be buying. You want to make sure it is suitable to your needs as well as that of your family. Before purchasing, drive the area. See what amenities are available in the area. If you can, stop and talk to the locals to see if they know of any downfalls to purchasing a home in this area.


One of the best benefits of a house and land package is the customization you are allowed. Not only do you get to view and select the block of land that your home will sit on, but you also get to choose the builder and the type of home you want. If you purchase early enough, you will get to select the color scheme as well as the fixtures, hardware, and appliances that will go into your home.

House and land package


The last essential tip in performing your due diligence before purchasing a house and land package is to research your developer and builder. Make sure you know how long they have been in business and the type of reputation they have. How many house and land packages have they sold, are they up to par? Also, verify the warranty and insurance coverage that the builder has. Lastly, make sure you get referrals from other satisfied homeowners. Talk with those homebuyers and make sure the entire process, including the communication and artistry, was satisfactory before proceeding.

Why it is Essential to Understand a House and Land Package Before Moving Forward

If you decide to build a house and do not pay attention to the type of package you purchase, you may not be able to afford the house. If you are paying on the land and cannot afford the construction loan, then you will not be ready to start the build of the house. There are specific requirements though that you need to be aware of in that you may have to start your build within two years to continue to qualify for the loans. You also want to be able to have a great location with the features you want in your new home. Lastly, you need to know the reputation of the developer and builder that you select if you choose to purchase a house and land package!

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  1. Adam Ting January 29, 2019 at 11:04 am

    Useful information, Glad to get it. Thanks