For property buyers on a budget, it\u2019s a common dilemma\u2026to go for a house and land package or an apartment?<\/strong><\/p>\n Melbourne-based buyer\u2019s advocate\u00a0Cate Bakos says many buyers across the country, especially those looking for their first home, weigh up purchasing a house and land package against an apartment, either off-the-plan or established.<\/p>\n She says the secret to making the right choice is weighing up the pros and cons of each.<\/p>\n Bakos says while she doesn\u2019t generally recommend house and land packages, especially as \u201cpure investments\u201d, they do have upsides.<\/p>\n House and land packages do offer<\/a> buyers affordable properties. Picture: Getty Images<\/p>\n<\/div>\n In addition to different financial incentives on offer in different state and territories, \u201call-inclusive\u201d packages, commonly found in newly-established estates, are affordable.<\/p>\n \u201cThe biggest pro is affordability,\u201d she says.<\/p>\n \u201cIf you want a big house on a decent-sized block, a \u2018four bedrooms, two bathrooms, plus a media room\u2019-type of house; that\u2019s affordable in a house and land package on the fringe of a city,\u201d Bakos says.<\/p>\n New-build packages also \u201coffer something brand-new and glossy\u201d, which appeals to many, she says.<\/p>\n \u201cThere are certainly buyers who love to know a house is new, just theirs and no one else has touched it. People also like to have input into the design and colour scheme of their home and you get that with a house and land package.\u201d<\/p>\n Then there\u2019s demographics.<\/p>\n \u201cIn new estates, you tend to get a lot of like-minded demographics and for some, knowing there will be, for example, lots of young families around you, with similarly-aged children, can be enticing from a social point of view.\u201d<\/p>\n Buying new? <\/span>Find your perfect house & land package<\/span><\/strong><\/p>\n With affordability, comes compromise on location, amenity and ultimately, lifestyle, Bakos says.<\/p>\n With almost all house and land packages located in new estates \u201cquite a distance\u201d from a city centre, long travel times, road congestion, poor public transport and lack of amenity are obvious cons, she says.<\/p>\n \u201cBeing further out has an impact on your lifestyle. The main one, the commute, isn\u2019t just about travel time, it\u2019s about time away from the family. Then there\u2019s the lack of amenities, because many estates are built before everything else you might want is in place.\u201d<\/p>\n On the financial side, a house in an estate can be tricky to rent out, if required.<\/p>\n \u201cThe vacancy rates will be higher and it\u2019s a big ask to get someone excited about renting a property that\u2019s maybe an hour away from where they work,\u201d Bakos says.<\/p>\n \u201cYou also need to understand that a new house that\u2019s part of a house and land package can potentially depreciate at a more rapid rate than the land appreciates, meaning you can go backwards financially.\u201d<\/p>\n Crime rates \u201cfurther out\u201d can also be an issue, Bakos adds.<\/p>\n While a perceived oversupply of new apartments in places like Melbourne\u2019s CBD has made headlines recently, affecting sentiment, Bakos says buying a new or established apartment has many upsides.<\/p>\n Most apartments are also conveniently located, so lifestyle is the big pro. Picture: Getty Images<\/p>\n<\/div>\n Stamp duty discounts for new apartments is just one.<\/p>\n \u201cMost apartments are also conveniently located, so lifestyle is the big pro.\u201d she says. \u201cWalkability\u201d is an important part of that, she adds.<\/p>\n \u201cApartments offer low maintenance and ready access to amenities you just don\u2019t get on the outskirts of town,\u201d Bakos says.<\/p>\n New Apartments: <\/span>View our featured developments here<\/span><\/strong><\/p>\n Well-proportioned apartments in established suburbs often hold their value in the long-term, offering better financial prospects, she adds.<\/p>\n Financial risk, unexpectedly high outgoings and the challenges working with a strata body are some of the biggest downsides of apartments, Bakos says.<\/p>\n \u201cThere is a greater risk when it comes to financing<\/a> of brand new apartments, as your bank needs to agree with the price you paid and there are oversupply issues to consider,\u201d she says.<\/p>\n With higher-density developments, featuring things like pools, gyms and concierge services, outgoings can be high, Bakos adds.<\/p>\n \u201cThese outgoings often don\u2019t become obvious until you\u2019ve settled. Sometimes what\u2019s pitched to you and what you actually get, and are up for, can be different and that can hurt buyers.\u201d<\/p>\n Also, some buyers \u201cdon\u2019t like the idea\u201d of having to work with a body corporate or strata body.<\/p>\n \u201cYou have to agree on shared costs and if something goes wrong structurally, something big, you can be out-voted and face a big expense,\u201d Bakos says.<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"House & land package \u2013 the pros<\/h2>\n
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<\/p>\nHouse & land package \u2013 the cons<\/h2>\n
An apartment \u2013 the pros<\/h2>\n
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<\/p>\nAn apartment \u2013 the cons<\/h2>\n