https://www.abc.net.au/news/2023-10-25/susan-kiefel-legacy-as-high-court-chief-justice-law-report/102998374?utm_campaign=abc_news_web&utm_content=link&utm_medium=content_shared&utm_source=abc_news_web
Buying a House and Land Package Part 2
When looking at house-and-land packages, it’s important to note what is included in the advertised price. This price usually reflects the most basic inclusions, and higher-quality fixtures and finishes can cost more. Many display homes feature additional inclusions to show the home at its best, so it’s important to discuss with the developer what is and isn’t included in the price.
When attending an inspection, also speak with the representative about the future of the area including potential open spaces and community areas, such as parks, sporting facilities or bike paths. It’s also a good idea to consider what the area will look and feel like when the housing estate is complete, as there may still be many more houses and facilities planned that are yet to be built.
Choosing when to buy in an area is also a factor to consider. If you are one of the first in the area, you have the opportunity to chose from multiple blocks of land. But you will not have a clear view of what the neighbourhood will be like when completed, and may also have to live through years of construction, noise and untidiness as nearby houses are being built. Buying late, once most of the houses are built, will allow you to have a full concept of the neighbourhood, plus you won’t have to live through the noise and mess of new construction. However, the choice of homes may be limited.
Some new estates only allow selected builders or home development companies to build in the area and restrict building choices of the home owner. Some housing estates also are built with a theme to create a harmonious architectural style to the area. This does appeal to many people, but it sometimes restricts your choices in cladding, finishes, even paint colour and landscaping style.
Questions To Ask Yourself Before Building A New Home
If you’re considering building a home, don’t feel overwhelmed by the process. Like anything else, if the task feels huge, it can help to break it down into small achievable parts. Asking yourself a series of questions about what you want in a new home is a good starting point.
- Where do you want to live?
- What nearby amenities are important to you?
- What is on your wish list in terms of size, layout and features?
- What is a realistic budget?
- What is your timeframe?
- What sustainable attributes would you want to include?
- Do you have a “designer’s eye” or do you need help?
If this process seems still challenging, do some research, attend open houses in the area you’d like to live in and write down what you like and what you don’t like about each house you visit. Good luck!
How do house-and-land packages work?
One of the most straightforward ways to build a new home is to purchase a house-and-land package.
House-and-land packages are usually offered by developers that have bought large areas of land and subdivided it into smaller lots to create a housing estate. These are often located in new suburbs, which are usually found at the edges of cities, in smaller regional towns, or in areas that were once occupied by rural properties. Sometimes, although less often, new suburbs are created when former industrial land closer to the city centre is converted to residential.
House-and-land packages are often created with a specific block of land in mind, with the house designed to best take advantage of the orientation of the lot. Alternatively, buyers may be able to select the exact block of land they want, choose from a range of approved designs, and customise the home to suit their needs.
When creating a new housing estate, developers usually create new roads and install services like water, electricity, gas and sewerage. Homes usually already have development consent, meaning minimal delays before construction can commence. Some homes are offered already built or under construction, meaning all a buyer has to do is move in.
Prices for house-and-land packages are usually fixed, meaning buyers won’t have any unforeseen costs during construction. These homes are usually more affordable than a custom-designed home because builders are usually constructing many homes in the one area at the same time, and can work more efficiently and quickly. Because house-and-land packages are often further from city centre, prices can be quite affordable compared to new and existing homes in inner suburbs.
Have you ever wondered why your home loan could be rejected?
Here is the reasons:
–You keep inactive credit cards
The average Australian might not have given much thought to their unused credit cards, stuffed long ago into their wallets, paid off and forgotten about.
However, those cards can be grounds for a home loan refusal, regardless of whether or not they have been paid off.
With inactivity, there’s a risk of the bank closing the account, and banks are not required to notify their customers if this was to occur.
– You have a ‘high-risk’ credit history
When it comes to home loan rejections, weak credit doesn’t necessarily signify that people have had bad debt such as defaults.
Rather, it can mean they have demonstrated high-risk characteristics like excessive enquiries for unsecured debt in the form of credit cards, unsecured personal loans and the use of payday lenders.
– Most people are told by family, or perhaps another friend, [that] they need five per cent of the purchase price. But it’s actually five per cent plus costs – that is, something closer to eight to nine per cent to account for potential partial, or full, stamp duty and lender’s mortgage insurance.”
If you’re not certain that you have enough to cover all the hidden costs, it’s a good idea to set a budget and save an overflow amount to cover all bases and even access more options
-Some businesses are awarded grants by the government. However, many don’t know these grants are deducted from their overall earnings, effectively reducing their borrowing capacity.
-The bank doesn’t like the location or type of property you’re trying to get a loan for Sometimes, home owners find themselves unable to get approved for a new home loan as the property or location is too high-risk.
From the type of property to the likelihood of flooding and fires, and even the suburb you want to buy in – all can have an impact on whether you’ll get the green light from lenders, brokers say.
Source: Domain Website
How the property cycle works and how to use it to your advantage?
What is a property cycle?
A property cycle starts with a boom, when prices and demand are high amid limited supply.
The boom is typically followed by a downturn, which can happen due to an oversupply of properties in the market, a reduction in borrowing capacities, or a combination of factors. In this phase, prices may fall, and demand is low.
With fewer buyers in the market, prices start to level off or fall – this is known as the stagnation or stabilisation phase.
Slowly, the property market starts recovering and more investors and buyers start entering the market, which is the upturn phase that leads to the next boom: the start of a new cycle.
Dr Nicola Powell, Domain’s chief of research and economics, says there’s a widely-held view that Australian property prices go through boom and bust phases when in fact it’s less dramatic than that, with ups and downs indicative of a healthy property market just like the expansion and contraction of an economy.
“In reality, what you tend to find is that prices, particularly in our big capital cities, go through substantial periods of an upswing, when we see rapid gains in property prices, and then they move into a contraction phase of the market,” she says.
What drives a property cycle?
There are many different drivers says Powell, with population growth, interest rates, the availability of credit, tax and policy settings, health crises, big spending from federal government on infrastructure and buyer incentives all in the mix.
One of the factors that contributes to a downturn can be the loss of borrowing power when interest rates go up or when lending standards are tightened.
When prices stabilise, the Reserve Bank and economists tend to change their outlook and we hear talk of lowering rates or relaxation of lending criteria.
Is there just one property cycle in Australia?
Powell is at pains to point out there’s no one single property cycle in Australia.
“A property cycle happens at a capital city level, but it also occurs at a sub-geographic level as well,” she says. “Suburbs across the city move through the property cycle at different paces, and they can react to different things occurring such as infrastructure, investment and things like that, which can change the demographics and the amenities within a particular area.”
Media headlines often talk about the property market as if it were a single market, but while general in nature, this coverage can still be useful when combined with analysis at a more local level.
“I think the broad headlines that cover your city give you a good finger on the pulse for where the property cycle is,” says Powell. “But I think that local knowledge and research on your local area is very important because it’s really hard to pick a peak and it’s really hard to pick a trough of the market.”
Grantham says talking to real estate agents or buyers agents can be helpful because they’re “on the ground” and can provide insight into what’s actually occurring as opposed to what you’re hearing in the news.
How understanding property cycles can help your property decisions
While buying low and selling high has long been the dream for property owners, it’s difficult to predict how long each phase of a property cycle will last, and therefore difficult to “time the market”.
“When you look at the price cycle overall what it tells us is it’s not about timing the market,” says Powell. “It’s actually time spent in the market that counts.”
That said, there can be some advantages to buying during the slump and stagnation phases.
Powell says one of the big benefits that comes with buying in a downturn is the fact that you usually have a bit more time on your side and can therefore be a bit more strategic in the decisions you make.
Grantham points out there’s likely to be more property to choose from, so buyers may be able to tick more items off their wish list.
The beginning of an upswing is a prime time for builders and developers to jump into the market, says Grantham.
“Everyone is sensing things are changing, consumer confidence is increasing and people are trying to get back into the market,” he says. “If you can buy and sell in the same market it’s the best way to protect yourself during an upswing.”
On the downside, when you’re buying in the latter stages of an upswing the fear of missing out can take over rational decision making, says Powell.
Ultimately there’s no substitute for doing your due diligence and sticking to your budget regardless of what phase a property cycle is in.
“Whatever market you’re buying in caution needs to be taken,” says Powell.
Source: Domain Website