5 reasons to choose a house & land package

No doubt you’ve seen existing houses advertised as ‘first home buyer’s dream’ and ‘affordable starter’ and your heart leaps because you think “I might be able to afford that…”. In person, you’re likely to be disappointed at the compromises you’ll have to make, and the amount of work required to make it a livable home.

What real estate agents don’t want you to know
House and land packages, on the other hand, have copped some unfair publicity because they’re often in the outer suburbs and some developments have smaller than traditional sized sections. In reality, these new homes are constructed to suit the modern lifestyle with modern building materials, in new suburbs that are usually designed with lots of shared green space and parks.

As Paul Bull, CEO of Signature Homes points out “The truth is that first home buyers can buy a brand-new house and land package with a lower deposit than you would for a pre-existing house at the same price. That’s a home that is built to modern building standards. It’s well insulated, dry and warm and all the electricals are new – that means lower electricity bills, healthier homes and healthier families.”

House and land packages are created when a building company secures land from a developer or property owner and then matches the land with home design perfect for the section in terms of size, orientation and the contours of the land. The building company markets and sells that package, works with the buyer to personalise the home to their tastes, then manages the consent process and project manages the build.

Paul also points out that new home buyers opting to build can often defer the start of their mortgage payments until the house is built while enjoying the capital value increase on the property from the day that builders walk on to the site.

If you are looking to buy a new home, there are many compelling reasons to consider buying a house and land package. Here are five of the best:

1. Lower Deposit
House and land package new builds are exempt from the New Zealand Reserve Banks Loan-to-Value Restrictions (LVR), which means first home buyers can obtain finance for less deposit than the 20% typically required of first home buyers or the 40% from property investors.

2. Personalisation
Depending on the builder and the requirements of the developer, buyers have options to personalise their new home, including changing internal plans, wall placement and decisions on flooring through to tiles, colours, fixtures, fittings and kitchen and bathroom design.

3. Suburban Planning
House and land packages are often built in new developments that are planned and designed to fit modern urban design principles and stringently regulated by councils. They have close access to public transport and are conveniently located close to amenities, schools, and green spaces and parks – because modern town planners and architects think about these things.

4. Insulation
The build quality of new house and land packages and new building and material technologies ensure you can count on a warm, dry home for many years to come.

5. Peace of Mind
Second hand houses don’t come with a guarantee – things break, leak or flood and you’ll have to pay out of your own pocket. House and land packages, on the other hand, are built brand new so they’re guaranteed (not everybody offers the same high level of guarantee as Signature Homes, so scrutinise yours carefully).

“These house and land developments are key to answering the housing shortage, and housing supply issues in some areas in the country such as Auckland and Christchurch, and are one of the most practical forms of housing growth – which is why they are also popular in other areas such as Whangarei and Tauranga,” says Paul.

With reports* that four out of ten New Zealanders are toughing out the cold and damp to save on electricity this winter, choose your new home carefully and invest in a warm, dry and healthy future for your family.

*State of the Home Survey for the Auckland University of Technology and HRV home ventilation company