So, you are in the market for a home and land package. If you are an investor, you will be looking for return on investment and suburban growth. It’s always a good idea to do some research on suburbs first, be sure to look at the statistics for the last 10 years, as some suburbs can be volatile. Gather as much information as possible so that you can make an informed decision. Look at the growth of the suburb and see what new infrastructure is being done, this would give you a good indication about the future of the suburb in question. Make sure you are close to schools, stores, hospitals, and transportation.

The first thing to determine would be your budget, as your budget will determine where you can shop. So before you start looking and spending a lot of your valuable time, it might be worth talking to a mortgage broker first. There’s nothing worse than spending time looking for the right property, only to be told you can’t borrow the money.

As an investor, you may decide that you want to get more in return (ROI), you can by buying a double occupancy, since you can get at least 2% more than a single home. However, when it comes to selling, your audience will not be as high, but you only need one buyer!

There are 2 types of contracts when you buy a house and land package, one is a single contract and the other is a 2-contract. If you are buying from an SMSF, you will need to buy with a single contract. This means that the builder covers the cost of construction and you buy when it is complete. In such an active market, it may be extremely difficult for you to find a single contract, however, it does not mean that it is not impossible, but it is most likely not the area you are looking for. With a 2 part contract, which is more common, you will buy the land and then as the builder builds, there are 6 withdrawal payments as the builder progresses with construction.

Make sure with the package you are buying that the land is registered or has a registered date, as you do not want to wait too long before construction begins.

Remember that by investing in a house and land package you will get the benefits of depreciation value, but remember that it is always good to be in this investment for the long term, so hold on and try not to sell within 5 years.