It is the dream of many people to be homeowners. While one can buy an already made home, there has been an increase in the number of people opting for a land package. Most real estate companies selling this package require that you pay a certain amount in a deposit. You pay off the remaining amount for your new home in the period necessary to build it.
With this house and land option in Melbourne’s west, you get enough time to pay off what would otherwise be costly. During that period, you can explore other options, including loans. How then do you choose to pick the package? Here are five things to explore:
Purchase and Sale Agreement
At the time you are making the deal, you technically do not yet own the piece of land, or the building is yet to be erected. However, you want to make sure that you keep a duplicate of the agreement. Also, ensure that you look at the building contract and keep a copy. It will be to your best interests to have them reviewed by a solicitor. You also want to make sure that there are no clauses in there that favour the seller at your expense.
Lending Options
Some packages give you an opportunity to use the lender associated with the builder. You can go for this option but only after you do due diligence. Make sure that your lender knows about the package you are considering. The fact that you will be entering into another building contract may affect how they package their agreement with you. This can also be an issue for some lenders. In most cases, the lender might need to see the title.
Building Timeline
Investigate to know when precisely the builder starts the process and when they expect to be through. Remember that you will be living in a different place as you wait for the building to be complete, so these details will help you with planning. Get a contract with the builder with the particulars that detail the schedules and guarantee completion. The builder is likely to offer you a written contract, although you can also approach them with yours. Whatever option you go for, work with your lawyer. They will help you have some protection if something goes wrong.
Guarantees and Warranties
Find out the warranties that you will get upon buying into the deal. For example, when will the building guarantee be yours? Many new buildings have this time set at ten years after construction. You want to make sure to keep a duplicate of this guarantee.
Building Details
A building agreement should specify some things, including the materials the builder will utilise, appliances, and colour schemes. Be sure to confirm them. The point here is that you love what has been proposed. If you are not happy, seek to make amendments while still consulting. Upgrades at a later time may prove to be costly.
Considering these things will make sure that you get a satisfactory deal. As a thing to note, check the reputation of the builder. If you need it, ask to see things such as insurance for public liability. It is always good practice to walk through all the steps with your lawyer.
