Pros And Cons Of Investing In A House And Land Packages

The very glamorous houses and land packages are currently the talk of the town because they are visually appealing. House and Land packages are a great idea for investment over the long term and interiors are amazing to look at. These packages look easy to purchase and genuinely offer an array of advantages. But do these packages also have some downside to them? And most importantly, do the advantages of investing in a house and land package outweigh its negative side?

In this article, we will try to put forward the pros and cons of investing in a house and land package so that you can ponder whether to invest in it or not.

Also Read: 10 Surprising Facts That Affect The Value Of The Property


Attract Quality Tenants

A newly constructed house with modern flooring and fittings is definitely going to attract high-quality tenants; you don’t have to go for tenant hunting yourself.
These tenants turn out to be long term and they will have no issues paying the desirable rent owing to the modern convenience your home will offer them. If your house is located in a well-developed area with basic facilities around, you are bound to get good rental returns.

No Maintenance

When you own a newly constructed house, you don’t have to worry about any spending any penny on its maintenance for a few years. This will definitely save you a considerable amount of money in comparison to buying an old house that needs something to be fixed every now and then.


Some of the builders also offer a maintenance period for your new home which could vary over three months. So you don’t have to worry about attending to the requests about some left-out features- all that will be handled by your property builder. Moreover, they also offer product warranties that will cover you for a good number of years.

Stamp duty saving

One of the biggest reasons why investors are tempted to invest in house and land packages is that you get to save thousands of dollars on stamp duty. You only have to pay the stamp duty on the land component that you’ve purchased. This is because in this package, buying a house and then building a home on it are two separate contracts.

Flexibility to choose your design

In a house and land package, you get to choose a house design that best fits your requirement, budget, and goals. Moreover, you might also get to pick the block where you want to buy the land based on the convenience.
This helps you to maximize your investment and get huge rental returns.

Also Read: What do you need to know about buying a fixer upper?


Suburbs location

Most of the house and land packages today are located in the suburban area. These areas witness slower development and you will find a few families living nearby due to lack of infrastructure. So it might take a lot of time in getting the desired returns on investment.

Surprising delay in construction

Similar to any other property construction, you will witness considerable delay in the construction process. This is because the sites are located in the outskirts of the city where it takes time to transport the raw materials and other supplies. Apart from that, the weather conditions in this area also hamper the construction.

You might also see that the builder may demand an extra amount of money to finish the development if he is inexperienced.

Less Land value

As mentioned above, since the land is located away from the major city, the value of the piece of land will rise slowly in comparison to a house situated in the heart of a city.
A 30-year-old house may not be too appealing to look at but it may provide better and fast returns on investments than a house and land package situated away from the residential area.

Also Read: Ready To Buy Your Dream Property? How To Find A Buyer’s Agent


These are some of the pros and cons of investing in a house and land package. As you can see investing in a house and land package is profitable if you can find a package in a good location. Further, you should always look for long-term returns in these packages as they will not prove to be fruitful in short term.

Also Read: What Does A Buyer's Agent Do?

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