Melbourne, the capital of the Australian state of Victoria, is home to some of the most notable landmarks in the country. Here you will find the Royal Exhibition Building, National Gallery of Victoria, and the famous Melbourne Cricket Ground.
These landmarks, along with other points of interest, such as the nearby CBD, have sparked a lot of interest for many residential property buyers.
Hoddle Grid and Home Real Estate
The urban area of Melbourne is larger than that of Mexico City or even London. The urban area is designed using the Hoddle Grid. The adjoining districts, i.e. Docklands and Southbank, are considered extensions of Melbourne’s CBD or central business district.
Again, this is another feature that has made the city quite attractive to residential property buyers. Note that the homes here are patterned after the quarter home and garden design. If you’re in the market for some real estate, it would be best to understand how to get home and land packages in Melbourne.
Below are some of the details that you should consider before you purchase a residential house and lot in Melbourne:
The Two Major Types of Home and Land Packages in Melbourne
Property developers offer a variety of home and land packages in the city, which can sometimes get confusing. That is why you need expert advice from professionals who have extensive experiences in the residential building industry.
One of the strategies that you can use is buying the land first and then building your new home using a construction loan package; this is one of the more popular ways to buy a new property in Melbourne. Inquire about this option when you talk to a developer.
Another option is called the turnkey package. Think of it as buying a new home with everything already in it. Not all developers have this type of home and land packages in Melbourne.
The next question is the difference between these two options?
Vacant Land and Construction Loans vs. Turnkey Package
Getting a vacant land loan and construction package may save you money. On the other hand, the turnkey package is the more convenient option.
Note that vacant land and house construction packages come bundled together. This loan package requires you to start construction within 48 months after the approval and release of the funds.
The turnkey package, on the other hand, will have the developer purchase the land for you and then construct the home according to your specifications. It’s a new land and home package all in one. Your developer can offer you viable financing options depending on your budget.
Turkey properties usually come with lots of features such as the following:
- Private master retreat
- Upstairs sleeping zone
- Privately positioned master suite
Size of the Loan
Another factor to consider is the size of the loan. Both the turnkey and the vacant land and construction packages generally allow you to borrow up to 95% of the value of the property. Note, however, that if you opt to buy the land first and construct the home later, you’ll be making two purchases, which can be a bit of a hassle in the long run.
You will need to provide the following requirements to qualify for these two types of home and land packages Melbourne has to offer:
- 3 months bank statements
- Last two payslips
- Evidence of your deposit (i.e. you are usually required to pay a deposit for the property)
- Recent statement of debts
- Three forms of identification
Later on, you may be required to submit building specs, building plans, and fixed building contracts. Vacant land and home packages will require you to do a lot of paperwork.
If you want to avoid all the hassle and paperwork, then turnkey and other pre-built home and land packages are your best options. They allow you to just focus on building your dream home and enjoy the fruits of your labour.