Not sure whether house and land packages in Sydney are really worth it? Having trouble deciding between building a home or buying an existing property? Is a home and land package right for you?
The short answer... it depends.
To help you begin to sort out whether you should be looking into house and land packages or existing properties, here, we’re going over the pros and cons of both options and how working with a buyer’s agent can help.
Pros and Cons of Home and Land Packages
First, let’s start by going over some of the benefits and drawbacks of house and land packages.
Pros of House and Land Packages
- Be part of the decision-making process
- Build your dream house
- Unregistered land can gain value while you wait for settlement
One of the major benefits of house and land packages is that you’re more in control of the decision-making process. Of course, there will still be some aspects of building a home that fall outside your control, but compared to an existing home, you’ll definitely be more involved with how decisions are made.
In short, you’ll be able to build your dream home that works for you and your family. Or, if you’re looking at it more from an investment perspective, you can build a beautiful home for your future tenants (perhaps in a suburb that could use some added value).
Plus, you’ll be earning money as the unregistered land can gain value in the meantime. Again, as an investment strategy, house and land packages are more lucrative than you might expect.
Cons of House and Land Packages
- Takes months and months
- Can be more stressful
- No historical value
Probably the biggest downside of house and land packages is how long they take. It’s a huge process and can take months before you even break ground. And from there, construction can take up to a year or more to complete.
For this reason, house and land packages are often more stressful as well. It requires patience and the ability to adapt to constant changes. It’s certainly not for everyone.
Finally, while new builds are certainly stunning, fitted with the latest trends and interiors, you’ll be missing out on the historic charm that older homes can sometimes offer. So, this could be seen as a downside for some.
Pros and Cons of Buying Existing Property
Now, let’s compare those pros and cons to some of the benefits and drawbacks of buying existing property.
Pros of Buying Existing Property
- You can move in quickly
- Enjoy the history of a lived-in home
As opposed to house and land packages, when you buy an existing property, you can get the ball rolling and move in a whole lot quicker. Of course, buying property of any kind often takes a while, but you’ll be signing on the dotted line a lot sooner when you buy an existing property.
Another perk that some buyers look for is historical charm in a property. Even if it’s not the perfect layout or the trendiest design, often, the history of an existing home can be a huge selling point.
Cons of Buying Existing Property
- Less control over the floorplan and design
- Fewer grants and incentives
- High competition
- Older homes tend to have more issues
One of the downsides that many buyers find when buying an existing property is the fact that they have little control over the floorplan and design. A renovation is always an option, but in terms of purchasing a property outright, in some ways, you get what you get.
Existing homes also qualify for fewer government grants and incentives that can be incredibly helpful in the affordability of purchasing a property.
Additionally, existing homes are often in areas with limited new development meaning the competition is stiff. Existing property is likely to sell over the reserve price, pushing you beyond your comfort level in an emotional bidding frenzy. Not ideal...
Also, the older the home, the more issues it likely has. However, all homes are required to be up to code and homes that are decades old can often remain in amazing condition. Still, it’s something you might want to keep an eye on when buying an existing home.
Both house and land packages Sydney-wide and buying an existing home can help you build wealth. Some prefer a more DIY approach with a home and land package, while others enjoy the history and comfort of existing homes. In fact, many investors end up doing both.
Your buyer’s agent can help you sort through your options and figure out what’s best for you based on your budget, time constraints and anything else you may have not considered.
Need help deciding between a house and land packages or buying an existing property. Contact us at Wealth 360° today!