House and land packages are extremely popular in New Zealand. With building prices rising, it makes sense to save money wherever you can. And cutting down the usual costs of designing a custom home is a good way to do it. But are house and land packages cheaper than buying an existing home? Let’s explore it further.
What is a house and land package?
A house and land package is, as the name suggests, a house and land package all in one. They’re usually offered by property developers who buy multiple plots of land in a specific location and intend to build homes on all of those lots.
Contrary to popular belief, the home designs on offer aren’t all the same. Developers and builders who sell house and land packages have a range of different house designs to choose from. So, you basically buy everything in one package, much like buying an existing home. The difference is, that everything is brand-new and you have a little more control over the house design.
The benefits of a house and land package
There are plenty of reasons why people love house and land packages. Most of all, simplicity is a key factor. No dealing with numerous companies and professionals. There is also a thought that it’s a cheaper way to get a new house, and we’ll look at that later. Here are some of the benefits of house and land packages.
It makes the process easier
Overall, the entire process of a house and land package is so much easier. You’ll choose from a range of pre-set home designs, but all of them are already done. The builder knows them, which means they can build faster. They’ve also probably already sought building consent from the council, completed site testing and taken care of a lot of the steps you’d usually have to worry about when building a house.
Essentially, all you need to do is apply for finance, sign off on the house designs, choose your fittings and wait for the house to be built. No dealing with architects, surveyors, building companies and everybody else you need to manage when building a custom home.
Faster finance
When you buy a block of land and decide to build on it, the process of acquiring finance can be cumbersome. Usually, you’ll need to seek finance at multiple intervals, which is obviously frustrating. You only need to apply for one mortgage that covers the house and land. Buying separately, you need to get a mortgage for the land and then renegotiate your finance once you’ve enlisted a builder and developed house plans.
Quicker builds
When developers and building companies sell house and land packages, they get pretty good at the process. With similar plots of land and houses based on designs that they’ve built several times over, you can bet that they’ll build it quicker than they would a completely custom home. So, if you want to get into your new home faster, a house and land package is a terrific option.
Builders also usually have multiple crews working on house and land package homes in the same area (sometimes in the same street). This also reduces the build time because the building company can be far more efficient with its workforce.
Cheaper than buying land and building separately
Naturally, when you don’t have to spend much time on the house design because it’s already done, you’re going to save money. You can also assume that site testing has already been completed, and the entire process is faster. So, money is saved across the board when you buy a house and land package.
The alternative, buying your block of land and then hiring a builder is more expensive. The site is unfamiliar, house designs need to be done from scratch, and the building company probably doesn’t have a crew working in the area already. All of that adds up to an increased cost that you don’t have with a house and land package.
So, is it cheaper than buying an existing home?
While it varies depending on the region, buying existing homes is usually cheaper than building a home. However, these figures include all types of builds. So, you’re looking at people who buy land separately and build a custom home on that land, as well as house and land packages.
The general consensus is that house and land packages are more economical than purchasing land and building. Considering there is usually not much difference between buying an existing home and building, we can therefore suggest that a house and land package is very similar to buying an existing home.
Ultimately, it comes down to personal preference. The main advantage of a house and land package over an existing home is that everything is new. New wiring, plumbing, energy-efficient design and so many other benefits you get from modern building techniques. So, even if a house and land package costs slightly more than buying an existing home, you may still be better off in the long run if you factor in ongoing maintenance.
Looking for house and land packages in New Zealand?
Stonewood Homes offer plenty of house and land packaged throughout New Zealand. Thoughtfully designed for modern lifestyles, there’s something for everybody. Working with a team of professionals like Stonewood Homes ensures the process of buying and building your new home is always smooth and hassle-free. Make it even easier with a house and land package! Contact our team today and find out how we can help.
