House and land packages in Pakenham South can still be worth buying, but they require significantly more homework than they used to.
Price points and suitability
Packages currently range from $530,000 to $720,000 depending on the lot size and specification. This makes them a viable path for first home buyers who want a brand-new home and have the financial capacity to wait for completion.
Land registration timelines
Land registration often happens 12 to 24 months after the initial agreement, which is when payment for the land is required. Buyers must plan their cash flow around this delay rather than expecting immediate settlement.
Estate completion
The timeline for estate completion varies across the corridor. This means you may be living near active construction for several years after moving in, affecting your immediate living environment.
The honest reality
Build prices are not always fixed and may contain escalation clauses that increase costs. Furthermore, a builder’s financial track record and their hold of current domestic building insurance are critical risks that can compromise the entire investment.
Questions to consider
- Is the build price truly fixed, or are there escalation clauses that could push the final cost higher?
- Does the builder hold current domestic building insurance and a proven financial track record?
- When does land registration occur, and can you manage the 12 to 24 month wait before paying for the land?
Talk to KR Peters for a straight-talking appraisal with no obligation.
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Market information is general in nature and reflects conditions
at the time of publication. For advice specific to your property,
contact KR Peters.