House & Land Packages – A Good Investment?
House and Land packages are one of the best investments available in the Australian real estate market today.
Most federal and state governments are offering lots of benefits to owner-occupiers such as exemptions on stamp-duty and generous government grants, which means there’s a massive amount of interest in these types of dwellings. I have a few tips here for investors that are looking at buying house and land packages, because if you get the right one, they are great investments.
1. Get a discount on your H&L package
House and Land- It is possible to get a discount on a house and land package, and if you do you will hit the ground running. For instance, if you can find a parcel of land worth $200,000 but you manage to negotiate a discount and actually purchase it for $180,000, you’ll create $20,000 worth of equity. Shop around different reputable builders to find one that can deliver a less expensive package than their competitors. If a build is going to cost $220,000 try to negotiate it down to $200,000. If you’re successful, that’s another $20,000 worth of equity. All up, you’ve received a $40,000 discount.
This is a fantastic principle if you’re looking to buy a property in a growth market and create some inherit equity.
Other tips and strategies include:
2. Buy strategically in a market poised for growth.
3. Buy where there is a high owner-occupier rate.
4. Ensure your developer has a proven track record and check their credentials.
5. Make sure the property you are building suits the needs of the people who live in that area.
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