House And Land Packages – Are They A Good Idea?
You often see house and land packages advertised and may have an attractive price . . . . . but are they a good idea?
Here are a few things to think about:
- These sort of deals are popular with property investors who just want to get a new house and get tenants in as quickly as possible. Wouldn’t you prefer to have the houses next door owned by occupiers who are going to be more likely to care about the appearance of the house and garden than a tenant who has little interest.
- From what I have seen these deals tend to be offered on the least attractive blocks which is one reason why they seem cheap. Typically they can be on a major road, have poor orientation, odd shapes, or have access issues.
- They are often based on the smallest possible block that will fit the house. Often they will have the houses so close together they will look more like a terrace and the back yard will be minimal.
One of the Real Estate maximums is that the way to make money on a house is by buying the right house. Make sure you don’t harm your chances of a good future sale by buying the wrong House and Land Package.
Much more advice in the anewhouse – Guide to Buying a Block for only $2
For similar posts on buying land see the Blocks section