Browse Forums Building A New House 1 Oct 12, 2008 10:34 pm We put a deposit on on block of land a couple of months ago, which cost $175,000 all up. We got approval from the bank for this no problem. But because our land titles more than 6 months after our approval, the bank has to do another assessment.
Now I'm starting to get a little worried with the current situation that the value of the land may have dropped, and the bank wont lend us the full amount. Am I right to be concerned, or am I just over reacting? We have borrowed well under what we can afford, so there isn't an issue of us not being able to repay. The land is in a stage 2 release in Doreen, 18 x 36. I hope that the larger size and the fact that it was cheaper than land in surrounding estates will help keep its value up. Built with Bentley homes in Doreen All moved in Dec 2009 Now for the garden! Our stuff so far viewtopic.php?f=31&t=16532 Re: Getting a little edgy about our land price.... 2Oct 12, 2008 10:57 pm Good question. I would also like people's opinion on this. I bought land back in March, and had a preapproval. But our land wont settle until Jun 09. Now i'm not sure whether I should sign up to a builder as i'm not sure whether I would be able to get a loan from the bank, with this financial crisis. Or if the land has devalued, it might not be wise to build?
I dont really know what to do. Re: Getting a little edgy about our land price.... 3Oct 13, 2008 7:43 am My basic understanding is that land values don't diminish anywhere near as quickly as house values do.
Perhaps Ancient Mariner can shed some more light? After 4 years - we're in! Re: Getting a little edgy about our land price.... 4Oct 13, 2008 11:16 am Lostris I wouldn't get too worried at all about your land.
I can only see land going up in value in the plenty valley region. It is a booming area and is growing every day. You are not far from the new town centre being built in Laurimar and come start of next year the primary school will be built. By the middle of next year the safeway and shops should start opening. The bridge to plenty rd will open and laurimar and surrounds estates will all increase in value. So my estimation is by 12 months from now, your block will be worth 200k.. Re: Getting a little edgy about our land price.... 5Oct 13, 2008 11:22 am wakeboardandy Lostris I wouldn't get too worried at all about your land. I can only see land going up in value in the plenty valley region. It is a booming area and is growing every day. You are not far from the new town centre being built in Laurimar and come start of next year the primary school will be built. By the middle of next year the safeway and shops should start opening. The bridge to plenty rd will open and laurimar and surrounds estates will all increase in value. So my estimation is by 12 months from now, your block will be worth 200k.. Gee I hope so We bought in Eminence and we will be walking distance to the Laurimer shops and there is a proposed school going in that estate too, due to start building in 2010. I'm not too worried yet, I just feel a little vunerable..... Built with Bentley homes in Doreen All moved in Dec 2009 Now for the garden! Our stuff so far viewtopic.php?f=31&t=16532 Re: Getting a little edgy about our land price.... 6Oct 13, 2008 12:05 pm Lostris Gee I hope so We bought in Eminence and we will be walking distance to the Laurimer shops and there is a proposed school going in that estate too, due to start building in 2010. I'm not too worried yet, I just feel a little vunerable..... All I can say is don't listen to all the hype.. These things all run in cycles but the safest things to invest in will always be land and bricks and mortor. We bought a block in laurimar only about 400m from the town centre. I looked at all the other estates along plenty rd but the one thing I noticed about all of them is there were no facilities (or only proposed), you had to drive to them. So in my opinion the 4 estates (eminence, cornell's hill, mitchells run and laurimar) along yan yean rd are the best in the area and have the most potential for increases in property value. Re: Getting a little edgy about our land price.... 7Oct 13, 2008 3:34 pm Ok, so this one might help you as i work in a bank (one of big 4) and that too in Mortgages.
The preapproval needs to be done after 3 months again if you dont use it. However, the renewal of preapproval or approval means just checking back on your income and running a credit check on your name. If the bank has already done the valuation of your land at $175k, the bank will not do the valuation again after 6 months when your land settles. The only time bank will order another valuation is, if the property prices are slashed more than half by that time, which is unlikely in coming 1 year. So this shouldnt be a problem at all. Hope this helps Re: Getting a little edgy about our land price.... 8Oct 13, 2008 7:03 pm Thanks so much Homeishome, that really puts my mind at ease! We are with a big 4 as well Built with Bentley homes in Doreen All moved in Dec 2009 Now for the garden! Our stuff so far viewtopic.php?f=31&t=16532 Re: Getting a little edgy about our land price.... 9Oct 13, 2008 8:40 pm I agree with some of the previous posters - I don't think land values will diminish. We bought in Aurora Estate, North Epping in Oct 07 (settled in March this year) and our rates notice values the block at more than $50K more than we paid for the land. Doreen, Mernda and its surrounding suburbs are all booming and with all the infrastructure being built I think things will either stay as they are or increase.
I'm no expert though. Good luck with it all. 8 6119 Use a product like Equisol's Vitalise to clean the deck then coat with a penetrating timber oil. It will look 10 years younger and add value to your home. Visit for… 1 15765 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11893 |