These days, most new homes are constructed by property developers who purchase land once the government releases them. After infrastructure is laid, the developers will either build homes and sell them as complete house and land packages, or allow potential buyers to choose the blocks of land they want and the features they want their new homes to have.
For most homebuyers, the second option is the better one to make because it ensures they get the property that suits their needs at the location they want to be in. Likewise, because it’s a new home construction, they don’t have to worry about major repair and maintenance costs in the foreseeable feature, which is a common problem when purchasing an old, established home.
There are two comparable differences between buying a house and land package and buying a house. First, house and land packages are often designed to appeal to a target audience. That’s why some of the communities where you’ll commonly find them include golfing estates, retirement villages, and even eco-villages.
Second, while financing a home purchase only requires you to obtain a traditional home loan, financing a house and land package usually consists of two steps: buying the land with a regular mortgage, and building the house with a construction loan. The loans can be obtained separately, but are usually combined for convenience.