If you are planning to build a house, you may be surprised at the many options available. You can purchase a completed house that was constructed by a builder or order a tract home that will be built to the builder’s specifications on a builder-owned lot in a subdivision. You can also purchase a lot and then engage with a contractor in the construction of a home on it. Another option is to buy a home and property packages Adelaide from a builder.
Buying a land-home package from a builder has several advantages. Although many people are happy with a cookie-cutter house in a planned subdivision, many people want a lot in a more established neighbourhood, or they want a lot in a more rural setting. Some builders construct homes in established neighbourhood, meaning that the houses are constructed without a buyer in mind, and later they find a buyer after the construction is complete. However, even if you do find one unless construction is not yet complete, you may have no say at all regarding floor plans, materials or even colour schemes.
Traditionally, if a homebuyer wanted to have a home built on a lot in an established neighbourhood or a rural area, the homebuyer had little choice but to purchase the lot first, then hire a builder who can build their home. Although this can result in a very nice home on a very nice lot, there are some potential drawbacks to this scenario.
Although your builder can make efforts to get all necessary permits to make sure that the lot has all the required amenities, sometimes mistakes happen. Homes have been completed before anyone realising that no public sewer connection existed and local regulations required a larger lot for a home waste-treatment system to be installed. In some cases, some homes have built on land that was unable to support a house.
Even if the home is completed with all the necessary permits in order and there are no problems with the property, your home cannot legally be occupied until an occupancy permit is issued. If the inspector finds a problem and the permit cannot be issued, you may be left with a home that cannot be occupied. If this happens, your lender may refuse to convert your construction loan to a mortgage. When you own the land where the home stands, you cannot refuse to take ownership. Your only recourse may be a lawsuit with an uncertain outcome.
With home and property packages Adelaide, the land, and home, along with much of the responsibility, belong to the seller. Your builder will find the lot, make sure it is suitable for building, and secure all the permits. The sale will not close, and you will have no loan until the home is approved for occupancy and you know you have a home waiting for you.