House and Land Hervey Bay

All about House and Land Packages

A house and land package in Hervey bay is a great investment opportunity. If you are considering buying a house and land in Hervey bay you got to keep a few things in mind. Getting such a deal is quite different from purchasing a ready-made apartment or building. Also house and land offers better returns. This is because when you purchase such a package you just need to pay stamp duty on the land component. Whereas while purchasing an apartment you have to pay duty on the entire purchase price.

When looking for house and land in Hervey bay you would be given the cost of the land as well as the construction together as a single deal. But keep in mind that when you sign the package deal and submit payment you got to sign two different contracts. The land unit requires a ten percent deposit whereas the building contract requires a five percent down payment. You are better off with a house and land package because the initial capital outlay more than that of an apartment.

Things to keep in mind when buying house and land in Hervey Bay

  • When you are purchasing a house and land package you do not have immediate permission to start building. You need to wait out till the land is titled.
  • Once the land is titled it is ready for construction because it is finally in your name.
  • You can either choose to wait out for the land to be titled because it has great many benefits. You can save some extra cash during this time and also get pre ownership equity gains.
  • Also getting a pre-approval for a house and land package is straight forward when compared to getting permission for a construction only deal. With the former you simply have to pay a fixed price. This means you don’t have to go back to the bank asking for a higher loan when building is underway.
  • The new depreciation rule for investment properties makes house and land packages a more lucrative deal.

It can yield a rental of around 4 to 5%. Also there are major chances of strong capital growth of 10% per year and in some areas it tends to be higher. This is a positive sign because the demands for new homes is on the increase. You also have to invest less when compared to having to invest in a apartment or a condo. This means you are easily accessible to builders who are looking for land to build new property.

There are no hidden packages when it comes to house and land deals in Hervey bay. It is an ideal deal which is only going to benefit you as an investor in the long run.

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