House And Land Packages – Are They A Good Idea?
You often see house and land packages advertised and they may have an attractive price . . . . . but are they a good idea?
Here are a few more things to think about:
- These sort of deals are popular with property investors who just want to get a new house built 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.
- It seems to me they are usually offered on the hard to sell and the least attractive blocks which is one reason why they are cheaper. Typical problems I have seen include:
- On a major road
- Poor orientation
- Be an odd shape
- 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 a bad 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