Turn key build and house and land packages both very similar. So let’s start with house and land packages.
House and Land Package Finance
A House and Land Package is where a builder or developer has found land and they’ve decided what sort of house they’re going to put on that section. They're going to build it and they’re going to fund the entire build ready for you to move in at the end.
The way this works for lending is that the banks will lend up to 90% on these because the price is fixed for you. There’s no changes or variations as things are being built. Basically the house on this piece of land and this is how much it’s going to cost and it gets built.
You normally pay a 10% deposit to the builder or developer at the start and then the remainder of the cost on the day that you get access to the house when you move in. It’s a really nice way in terms of building a new home but without the whole hassle of having to find the section and then find a builder to build the house.
Turn Key Build
A turn key option is really similar but in that situation, generally you have the piece of land already. You find a section and then you find a builder who's going to build it for you. They give you a fixed price for the build and then they fund the build and you pay for the build at the end.
These two types of builds are really easy options in terms of construction lending and are treated very much like buying an existing property as there is no risk from the banks perspective.
Looking to get home lending for a house and land package?
If you are interested in getting a home loan sorted for a house and land package, we'd love to help you out with that. Feel free to contact us and Greg, Adam or Claire would be happy to discuss where things are at for you and the best way to approach getting the lending needed.