initial steps with signing

HI Everyone

We're very new to this.. and just trying to reconcile the initial steps (outlined below) as provided to us by the project builder against the information found here on "before you sign" thread. https://forum.homeone.com.au/viewtopic.php?f=31&t=66212

Steps per project builder

Select your Home & Land Package
Secure your desired Home & Land Package with a $2,000 non-refundable deposit
House:
Sign your building contract, tender and plans within 10 days, along with a payment
of the balance of your 5% deposit (split contract)
Land:
Sign your land contract with a 5% deposit, with nothing further to pay until your
land registers and settlement takes place

Our concern is - with us being very new (i.e. still deciding on a lay out for example), we do not want to fork out the $2k.. with only 10 days to work out everything before being presented a building contract .



Thanks in advance.

Have you considered purchasing the lot directly from the developer and use the 30/60/90 settlement period for finalising your plans ?

sorry, we're not familiar with how that works.

As this is a H&L package set up - we are not able to buy the lot directly from the developer.

on a side note, im assuming you are saying that there is a way to buy land direct from a developer, with allowance of 30/60/90 days from signing the purchase of land.. to finalise building plans?
If so, this doesnt make sense to me still.. because if i bought land.. then shouldnt i have the option to take as long as i want to finalise build plans? the land will just sit there..

You're right, if you buy the lot yourselves you have forever to build on it but if you're a first home buyer then you need to have a house completed and occupied in certain amount (12 months in Vic) of time to get benefit from the Stamp Duty exemption.
Similarly some developers also have timelines when you should start building on the lot (generally 12 months).

If you want to go with a single loan application, you could choose a 60/90 day settlement period, finalise your contract with the builder in the meantime and progress, this is very cumbersome as you need to be on top of everything but some go this way.

I am not sure H&L is mandatory for certain lots, when I was purchasing some lots were ready to be packaged if you chose a particular builder or go the traditional way if you decided to go with any other builder.