The property market can be a tricky place to navigate for first home buyers seeking the perfect place to call their own! This is true now more than ever, with many things to consider before taking the plunge.
Rather than let these factors throw you off your home ownership goals, perhaps it’s time to consider building from scratch with a house and land package! This is an exciting option for home buyers looking to build something that truly suits their lifestyle. Here are four big reasons building new might be the perfect option for you!
Take advantage of stamp duty exemptions
There are some great perks to building new, including financial incentives like reduced stamp duty.
In Victoria, if the total cost of your home and land package is less than $600,000, you will be exempt from paying stamp duty. And for homes valued up to $750,000, you’ll receive a concession. Certain eligibility conditions apply, so check out the State Revenue Office website for full details.
Additionally, for a traditional house and land package, stamp duty is paid upon settlement of the land. This means you won’t have to worry about it until then!
There may be some fees depending on your situation, like Lenders Mortgage Insurance, but these are minimal compared to what you pay to buy an established property, which can add tens of thousands of dollars to what you need upfront.
Longer settlements give you more time to save
Another plus side to building new is that your upfront costs are reduced.
In most cases, if you invest in a house and land package you will pay an initial deposit (which can vary from developer to developer) and be responsible for paying two contracts: one for the land developer and another for the builder.
After the deposit, the balance of the block is paid when the land is titled. At Riverfield, you’ll be able to keep track of your stage throughout the entire process through MyRiverfield. This real-time portal allows you to stay up to date as our civil construction team, BPG Civil, prepares the land for your dream home! Visit MyRiverfield to see what’s involved in producing a titled lot, from earthworks right through to settlement!
As for the home building side of things, payments to your chosen builder are usually set in a staged timeline, with funds released by the bank at certain stages when construction meets key milestones.
Make the most of new build grants
In addition to stamp duty incentives, state governments also make various grants available to first home buyers, including those building their own homes. In Victoria, a $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home.
This grant is applicable whether your first new home is a house, townhouse, apartment or unit, so long as the contract price for construction when building is $750,000 or less. Check out the full eligibility requirements here.
Secure land with a 5% deposit* at Riverfield
Honestly, we could talk all day about the benefits of building your first home. To learn more or to get answers to any of your burning questions, give our Estate Manager Jason a call on 1800 001 895! Or check out our First Home Buyers Guide for more helpful information and advice.