Turnkey vs House and Land Packages
When it comes to building your dream home, you have many great options to explore! Turnkey home packages and house and land packages are New Zealand favorites as they offer hassle-free building processes for a first or next home purchase. Speak to our builders about both turnkey packages and house and land packages for prospective homeowners. Both options have advantages and disadvantages for potential buyers. It is important to understand the differences between these two home options so that you can make an informed decision about which one is right for you.
In this article, the team at Paerata Rise explores the differences between turnkey packages and house and land packages to help you choose the best option for your needs.
What is a Turnkey Package?
A turnkey package is a type of real estate package that involves a builder completing a property to a “turnkey” standard. This means that the house is move-in ready, and no additional work is needed on the home before moving in. Turnkey packages generally include everything from the design of the house to the final landscaping, so that you can start living in your dream home without any additional hassle or maintenance. The ideal option for buyers who want a fixed-price and ready-to-move-in situation.
A significant advantage of turnkey packages is that you know exactly what you are purchasing. The price is fixed, and everything is included in the package, so there are no hidden costs. In general, there is significantly less stress as you are not directly involved in the planning, building or construction of the home.
At Paerata Rise, some of our build partners offer turnkey packages to give potential buyers a convenient and streamlined process when building. Experienced builders and designers will work with you to create a dream home that meets your needs and style preferences, offering a range of turnkey packages, from entry-level homes to luxury options. These home solutions are great for any demographic who is interested in a fully functional home with no-unexpected costs or considerations during the building process.
What is a House and Land Package?
A house and land package is a contract that involves buying a piece of land and having a builder construct a home on it. It is necessary for the purchaser to be more involved in the process from start to finish than a turnkey package. You will need to work with the builder to design and construct the house. These house and land packages are sometimes fixed price or they can be a price excluding cost of finishes such as stoves, dish washers, etc. and are added on at the time of purchase (PC sums – Pick and Choose). However, this option offers a lot more flexibility to customisation options for your dream home, allowing you to create the home of your dreams from the ground up, so this process is also a lot more personalised than a set package.
House and land packages at Paerata Rise offer home buyers the ability to customise their dream home from scratch, with the flexibility to choose the land and work with our team to design and build the house from the ground up. This option provides a more personalised and tailored solution for those looking for a unique and customised home.
With house and land packages, you have the option to purchase the land directly from the developer then contract the builder to build the home, or you can purchase the full package from the builder. This means potentially more flexibility in terms of design, as you can choose to build a smaller or larger house, depending on your budget. This is a chance to get more involved with creating your ideal home.
Turnkey vs House and Land Packages?
Deciding between a turnkey package and a house and land package depends on your own needs and priorities. If you want a hassle-free, fixed-price, and ready-to-move-in solution, a turnkey package may be the best option for you. On the other hand, if you want more customisation options, more input into the overall process and are willing to put in more effort and time into the home creation process, a house and land package may be the better option.
For lending, a turnkey product will give you a slight advantage of borrowing more for your home as this is a fixed price, fully completed home. A house and land product has less lending power and banks prefer the turnkey option.
Ultimately, both turnkey packages and house and land packages have their advantages and disadvantages, and it is up to you to decide which option is the best fit for you. If you are unsure, it is a good idea to consult with a reputable builder or an experienced real estate agent who can guide you through the process and help you make the best decision for your needs.