House and land packages tend to stir up emotions in buyers because of the colorful advertising that is usually posted up on the side of roads for the world to see.

Unfortunately, these feelings can cloud our judgment; the following are crucial considerations that you must make before purchasing a house and land package.

Inflation

Ensure that before any major decision, you do your research and find out how much the properties are worth, this includes confirming that the property is not being purchased for more than the market is willing to pay for it.

It isn’t uncommon for the estate owner to inflate the buying price or add more structures to raise it, this could mean that the decision to purchase the land independently and gaining quotes from professional could be the better option.

Fixed prices aren’t always so fixed

This is where your original budget could, in fact, be wrong due to unforeseen circumstances. Numerous cases result in the buyer purchasing the property and having it built for a fixed number, only to find additional add-on costs due to the property sloping and ongoing building issues, as well as upgrades.

Therefore, it is integral to make sure that your budget is always a little higher than your willing to spend, it is always optimal to have breathing space.

Blue Chip Areas

Ideally, you want to aim for the high quality and premium locations, and never settle for a lesser estate.

The best way to ensure this is only to be interested in areas where there is total congruence, which means landowners and developers are targeting owner-occupiers, and the positions are relatively premium and limited. Although this is a higher cost option, the high maintenance and care from the locals will make up for it.

Decide

Once enough research is completed, make your decision and act on it almost immediately as soon as the house and land package is released and has the lowest entry point price.

As the property stays on the market, the price will continually rise as the supply and demand are quite high, this creates an urgency in the buyer, and rightly so.

Never let the notion of constant price increase rush your research and judgment, but never dwindle with your time, make your conclusions and act on them while the prices are still low.

These are only a few but vital considerations to make when purchasing a home or land packages, have a look at https://www.cpsproperty.com.au/contact-us/ for more information.

Posted in Equity, Finance, Interest rates, Lending, Property investment on 11th April, 2017 | No Comments »