What’s the big attraction with home and land deals? Over the last decade or more across New Zealand, you would have seen and heard about home and land deals (also called House and Land Packages). These are being offered by building companies such as Build7 Coromandel, as well as property developers.
They are popular for a reason. While they’re not for everyone, they do offer advantages that are simply perfect for a particular type of buyer.
Are you that type of buyer? Read on and we’ll see.
We’re dealing with more and more clients who have decided to build new where previously they would have bought an existing home. There are lots of reasons why building is becoming a viable alternative – including better value and improved lifestyle. The list is long.
Home and land deals can be better value than simply having a house built on a section that you go out and find yourself.
The downsides of hunting for a section on your own include:
- the time it takes; not good for time-poor people
- the ‘hidden’ issues, which, on the surface might look like a perfect bit of ground, might in fact hide nasty (and costly) geological issues
- hidden costs that might include compliance, utilities and earthworks
That doesn’t mean that you shouldn’t bypass this option, but for some clients the risk and hassle just doesn’t stack up.
Another downside isn’t to do with the section, it’s to do with timing and the order in which you do things. We’ve seen clients who (not knowing any better) have decided to build, then engaged their local architect to design their dream home. They’ve paid retail price for this service which can add up. Then, with plans in hand they’ve excitedly started to hunt for land only to find the new house design doesn’t fit on the site!
An advantage of a package deal is that the house is designed to match the section. A ton of groundwork has already been done.
It might not sound obvious, but factors like aspect (is the house facing the right direction for best sun exposure), boundary considerations, positioning of rooms and parts of the house to maximise privacy, maximising street appeal and more.
When we talk about home and land deals we talk about value a lot. Value is not just the bottom dollar price – although home and land packages can be very price competitive.
First home buyers are attracted to house and land deals because of the lower lending deposit requirements and the overall price savings over a traditional ‘design and build’ option. But don’t assume that they are all cheap and ordinary! Yes, they can be affordable, but the sky’s the limit when it comes to some package deals and designs.
‘Value’ also includes:
- the peace of mind factor that comes from knowing that the details are being taken care of
- the time savings that are possible from contract to move-in date
- the money saving with the house plans and design (Build7 Coromandel offers a free house design service)
The downsides of home and land deals?
There’s potential disadvantages and advantages to nearly every kind of building process or concept. It just depends on your situation and what best fits.
Maybe you won’t like the neighbourhood? Maybe you’ll want to go it alone and build your custom designed home in a unique location in an established area on a stand-alone site. Maybe you’re knocking down your existing place and rebuilding? If that’s true, then the home and land package deal may not be your first option. You’ll be a ‘custom design and build’ client.
There may be also limitations around what you can change in the house design without it affecting the build price. This is because the pricing is based on a prescribed build specification. This doesn’t mean you can’t add to or change a design, it just means that there may be some cost variations – all which will be very clearly laid out and agreed to up front.
A special offer for you
If you’ve read to the end of this here’s something different you should know about. As the owners of Build7 Coromandel we’ve started to offer a FREE Build Planning Service to test how popular it might be. At absolutely no obligation, it includes creating an expert and careful comprehensive plan with you, to help you into your next dream home. It will save you a ton of time and potentially thousands of dollars.
Sound interesting? Get in touch and we’ll explain how it works, even if you’re just starting out on your journey to build new. You can also view our House and Land Listings for sale right now.