Understanding House and Land Packages for Bricklayers

What Are House and Land Packages?

As a bricklayer, you're probably familiar with construction from the ground up, but when it comes to buying your first home, house and land packages offer a unique opportunity. These packages combine the purchase of vacant land with a new home build contract, giving you control over the construction process while potentially accessing better pricing than purchasing separately.

House and land packages work differently from established homes when applying for a home loan. The loan amount is typically released in stages as construction progresses, which means your financial situation needs to accommodate this progressive payment structure.

Home Loan Options for Bricklayers

Tradie Home Loans can access home loan options from banks and lenders across Australia, specifically tailored for trades professionals like yourself. Our access to banks and lenders nationwide means we can find loan products that understand your income structure and employment type.

When considering a house and land package, you'll encounter different interest rate options:

• Variable interest rate - fluctuates with market conditions
• Fixed interest rate - locked in for a set period, providing payment certainty
• Split loans - combination of fixed and variable portions

Many lenders offer interest rate discounts for professionals, and as a qualified tradesperson, you may be eligible for preferential pricing.

First Time Home Buyer Programs and Schemes

If you're buying your first home, several first time home buyer programs can reduce your upfront costs:

First Home Owner Grants (FHOG)
Most states offer cash grants for first-time buyers purchasing new homes, which includes house and land packages. The grant amounts vary by state but can significantly help with your deposit or other purchase costs.

Home Guarantee Scheme
This government initiative allows eligible first-time buyers to purchase with as little as 5% deposit while avoiding lenders mortgage insurance (LMI). For tradies, this scheme can be particularly valuable given your stable employment prospects.

Stamp Duty Concessions
Many states offer stamp duty reductions or exemptions for first-time buyers, which can save thousands on your house and land package purchase.

Understanding Loan to Value Ratio (LVR) and Borrowing Capacity

Your borrowing capacity depends on several factors, including your income stability as a bricklayer, existing debts, and the loan to value ratio (LVR). Most lenders prefer an LVR of 80% or less to avoid LMI, though first time home buyer schemes can help you purchase with higher LVRs.

For house and land packages, lenders assess your capacity based on the total package value. They'll require:

• Recent bank statements showing your income deposits
• Employment verification
• Details of the building contract
• Proof of deposit savings

As a bricklayer with consistent work, many lenders view your employment favourably, especially if you can demonstrate steady income over time.

The Application Process for House and Land Packages

The application process for house and land packages involves additional steps compared to established homes:

1. Get pre-approved for your loan amount before shopping for packages
2. Choose your house and land package within your approved budget
3. Finalise loan approval with building contracts and specifications
4. Settlement on land occurs first, with construction loan activated
5. Progress payments released as building stages complete

Getting loan pre-approval gives you confidence when negotiating with builders and helps streamline the application process. Our streamlined application process is designed specifically for tradies who understand the value of efficient systems.

Additional Benefits and Loan Features

When structuring your home loan, consider features that can benefit your financial situation:

Offset Account
An offset account can reduce interest payments by offsetting your savings against your loan balance. For tradies with fluctuating income, this provides flexibility to park surplus funds when work is busy.

Investment Loan Options
If you're considering keeping your current residence and making the house and land package an investment, we can explore investment loan options and investment loan applications tailored for your situation.

Construction Loan Features
During the building phase, you'll typically pay interest only on drawn funds, which helps manage cash flow while construction progresses.

Making Your House and Land Package Dreams Reality

The property market offers numerous opportunities for bricklayers looking to purchase house and land packages. With your trade knowledge, you'll appreciate the quality of construction and can make informed decisions about builders and materials.

Tradie Home Loans specialises in home loans for bricklayers, understanding the unique aspects of your income and employment. We work with you to find suitable loan products that match your financial situation and help you access the various first time home buyer schemes available.

Whether you're looking at your first home loan or exploring investment opportunities, our team understands the trades industry and can guide you through the process of securing finance for your house and land package.

Call one of our team or book an appointment at a time that works for you. We're here to help you build your future, one brick at a time.