The real estate is attracting investors due to the steady appreciation rate of property and how some of them can generate a lot of money over the years. Well, real estate is vast, and you have a couple of options to consider if you want to invest in it. Usually, most people think that they could opt to invest in a piece of land or buy a house. Well, there are more options than that, and one of the common ones is the house and land package.
You might not be aware of what they entail but read on and find out what they are all about before deciding if they are your ideal form of investment.
What is a House and Land Package?
Most of the homes being sold today are developed in two ways. Property developers acquire the land and then lay down the infrastructure in that area such as roads, utilities, water. After this, they could build a home and sell it as a whole package, that is the house and land. Alternatively, they could offer a few possible customizable home designs so that buyers can have some input on the kind of home they would want rather than being forced to stick by the ones proposed by the developers. These two are called the house and land packages.
Finding A Good House and Land Package
These packages are always designed to meet the needs of a particular set of buyers. You could come across one in a specific estate or locale. Unless you have seen one being advertised in your area, you can easily find many other packages on listings all over the internet. Note that house and land packages are serious investments and always ensure that you are dealing with honest developers.
How Are They Different from Normal House Purchases?
One of the things that set these packages apart from regular purchases is financing. Usually, they are financed in two ways which entail financing the land and the cost of building the house. If you are getting credit facilities to cater for this, you will arrange them differently, but they are intertwined in some way.
Buying the land is straightforward, and it is done following the standard mortgage procedures. The second part requires a construction loan where you set an agreed amount to pay for each stage your home attains during the building period.
Benefits of House and Land Packages
House and land packages are the best option if you want to get a home in a stress-free way. They offer you an opportunity to customise your home and get the space and structure you need to live in comfortably. The costs associated with buying the land and building the house are transparent and you know what you are paying for beforehand. In most cases, interior designers and architects are involved in the process to help you achieve your desired goal without having to incur the expensive consultancy fees. Lastly, these packages offer you better value compared to the conventional houses. On average, these packages cost about 14% less than what you would have paid to move into a ready home.