FAQ
For First Home Buyers
A house and land package involves purchasing a block of land and choosing a builder to construct a home on that land. You can either buy the land and then select a home design, or opt for a package where the builder has pre-selected a home design for a specific plot. This option often provides cost savings and the convenience of a streamlined process.
The First Home Owner Grant (FHOG) is available to first-time home buyers who meet specific criteria, including being an Australian citizen or permanent resident, and purchasing a new or substantially renovated home. The grant amount and eligibility requirements can vary by state, so it’s essential to check the specific conditions in your area.
Typically, you’ll need a deposit of at least 5% to 20% of the property’s value. The exact amount may vary based on the lender’s requirements and whether you qualify for certain government schemes that may reduce the deposit needed.
New homes often come with modern designs, energy-efficient features, and fewer maintenance issues. Additionally, purchasing a new home may make you eligible for government grants and incentives, such as the First Home Owner Grant, that aren’t available when buying an established home.
Yes, many builders offer flexibility in customising the home design to suit your preferences and lifestyle needs. You can often choose finishes, colours, and certain design elements, although some packages may have more limitations than others.
In addition to the purchase price, you should budget for stamp duty, legal fees, loan application fees, inspections, insurance, and moving costs. For new homes, it’s also important to consider ongoing costs such as council rates, utilities, and maintenance.
For Investors
House and land packages can offer significant investment benefits, including lower entry costs compared to established properties, potential for capital growth, and attractive rental yields. Additionally, new homes often attract higher quality tenants and can be easier to lease.
When choosing a location, consider factors such as proximity to amenities (schools, shops, public transport), future infrastructure developments, rental demand, and historical growth rates. It’s important to research and select a location that aligns with your investment goals.
Investing in a new property can offer various tax benefits, including depreciation on the building and fittings, potential deductions for interest payments on your loan, and lower maintenance costs. These benefits can help reduce your taxable income and improve your overall return on investment.
Negative gearing occurs when the costs of owning an investment property (such as loan interest, maintenance, and management fees) exceed the rental income. The resulting loss can often be deducted from your taxable income, reducing your overall tax liability. This strategy can be beneficial for investors looking to maximise their tax benefits while building wealth through capital growth.
A rental guarantee is an assurance provided by some developers or property management companies that the property will generate a specified rental income for a certain period, typically 1-2 years. This can provide peace of mind and financial stability for investors, particularly in the early stages of property ownership.
General Questions
The process typically involves selecting a location and land, choosing a builder and home design, securing finance, and going through the contract and settlement process. After the land purchase is complete, construction can begin, with regular progress payments made to the builder.
The timeframe for building a home can vary based on the size and complexity of the design, as well as the builder’s schedule. Generally, construction can take anywhere from 6 to 12 months once all approvals are in place.
The FIRB is responsible for reviewing and approving real estate purchases by non-residents in Australia. International buyers must apply for FIRB approval before purchasing property, and certain conditions may apply, such as the type of property that can be purchased.