Browse Forums General Discussion 1 Mar 03, 2014 9:55 am Hi everyone We decided to buy an untitled block of land in July last year. We've paid our 10% deposit and now just waiting for titles which are expected in the next month. In November I started salery sacrificing at work. Because March is the end of the salery sacrificing yr (its called something else but I can't remember) All money sacrificed must be used or it affects how much you can sacrifice the following year. When I signed up I new I wasn't going to be able to spend the full amount by March so was only going to sacrifice half. But then I had an idea I could put it on the land before it titled and give it to the developer. I called them before I committed to the full amount and the person I spoke to said it wouldn't be a problem. Last week we went to the sales office to put the money down on the land. The person there, the same I originally spoke to on the phone, said he had to look into it more and would get back to us. A couple of days later he called and said it wasn't possible to put any further money down once deposit had already been paid. Does anyone know if this is true? Or is it just a bit of hassle for the developers to organise. The reason we need to put it on the land is so the money will be counted in our deposit. I'm planning on calling my conveyancer to discuss but thought I'd see what people here had to say. Thanks for your help Re: Putting more money on land once deposit has been paid 2Mar 03, 2014 3:06 pm I am not sure that you could use salary sacrificed amounts to pay for your land anyway (unless you work in an industry such as health care where they don't pay FBT - My wife used to get "special expenses". All she had to do was submit any receipt and they would pay her on that basis - we submitted the receipt for the deposit on the purchase of an existing house and had that reimbursed). Regular salary sacrificed amounts can typically only be used for work-related expenses such as a car lease or purchase of a computer or phone. Putting more money on land once deposit has been paid 4Mar 04, 2014 7:45 am Why not just submit the receipt for the existing 10% deposit, get the money paid into your account and then invest it? It is better to have the money sitting in an account earning interest for you than in the developer's account earning interest for them. I am not sure what you mean by saying you want the money 'counted in your deposit' - when it comes to your mortgage the bank will base it on how much you are borrowing - whether the remainder comes from your savings or has already been paid to the developer is immaterial. Re: Putting more money on land once deposit has been paid 5Mar 04, 2014 7:57 pm Money goes straight onto a living expenses card (works like a debit card) Can't get cash out/transfer funds so that's not an option unfortunately. What I mean by counting towards our deposit is that any money paid to builder or developer the bank takes into consideration and includes it in how much we have saved for the house, hence us not needing mortgage insurance. We could spend the money easily on white goods for the house however the bank won't look at it then. I'm not sure if that makes sense I probably haven't explained it very well. Thanks for the suggestion though I appreciate your help. Re: Putting more money on land once deposit has been paid 6Mar 05, 2014 9:57 am No, I understand. Can you use the debit card to buy, say, a grocery gift card or cards, use that to buy your groceries and petrol then save the money you would have used which will then reduce your mortgage amount? Re: Putting more money on land once deposit has been paid 7Mar 09, 2014 6:52 am The 10% deposit specified in the contract for sale of land (unless agreed to be changed to a lesser amount, commonly 5%) is the 'minimum' deposit payable. There's nothing stopping a purchaser from paying a larger deposit to the stakeholder, who holds it in their trust account. If the stakeholder declines additional amounts, then it'd probably be because of the admin or their accounting practices. Hey Buddy I am so sorry to hear. I have been going through something very similar. In our case a client owed us circa $200k for the final payment and moved in without… 2 2439 Hello everyone, I have a question regarding moving a chandelier after it has been mounted. The chandelier in question is quite large, measuring 4 meters… 0 72808 DIY, Home Maintenance & Repair Are you doing this with a building permit? Conversion of a non habitable room into a habitable room requires building permit. 3 19043 |