Browse Forums Home Finance Re: Land loan then build - deposit requirements 2Apr 21, 2021 6:46 pm Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Land loan then build - deposit requirements 4Apr 22, 2021 11:03 am Leona33 We bought the cheapest block of land in the newly released housing estate March 2020. selling price then was same as bank valuation. Block was tricky west to east upslope of 4 meters and 1 meter upslope south to north(back). Due to finding the right design we were delayed. We just signed a fixed cost contract for house construction few weeks ago as we have done soil test and contour survey ourselves before talking to builders. For the land alone, the bank valuation increased by $105000. Our mortgage broker advised us that we don't need to put in additional deposit for the house construction. Thanks to our mortgage broker and for the delays. You did well there thanks to the rising market. Obviously your land increased by enough that the equity was more than was required for the 20% deposit on construction to forego LMI that would have otherwise been needed. However others aren't as fortunate. Years ago, plenty were buying land at inflated prices and then the market correction came and when it came time to settle, they found their land had gone down in value and they had to find even more deposit to be able to afford the land and construction. Just something to think about for any current buyers out there. Always have a plan in place just in case your valuations don't stack up come settlement or construction. Cheers, Tom The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19762 Can someone please offer some advice? Im DESPERATE. Because I'm completely and utterly exhausted. How long are variations taking with other companies at the moment? We… 0 19126 This was on google. Development controls 2.3.1 Front setback D1 New buildings within residential areas shall adhere to a front building line, which is 5.5-6m to the… 1 3805 |