Browse Forums Building A New House 1 Aug 15, 2010 3:56 pm Hi there out in New Homes Land hehe im Kell i have a nice long list of advice to ask, so bear with me firstly i would like to say, congratulations to all new home builders. i have been roaming your posts for quite a while now and all of you have had both good and bad experiences. and lots of great designs and beautiful homes i have taken so much information and written it down in a notebook of what i like. secondly well mainly my post is for info, hopefully someone out there has an idea 1. at the moment i own a home with keystart, 70/30 share. i love my street and the neighbours but the house just isnt for me. unforunatly i realised this after i bought it two years ago. lol ive spoken to keystart about using equity and/or another loan to build my dream but because of the high increase on first home owners grants they are unable to lend anything at all, soo basicly im stuck with no idea how to work around to building. any ideas? i would sell if i need to but to get the loan has been made so hard now that it is unbearable. 2. my idea was to build so that i can experience building my first house the way i want, all the colours etc and also for the beinfit of my mum to get back on the property ladder. we would both be paying and sharing our dream house. my mum does have a couple of bumps *debts* which we are in the process of clearing. are we able to apply on a loan or building contract together? ive heard from a builder that we cant simply because we are mother/daughter and not husband/wife situation lol is that true or is that person telling porkies? 3. we have been around to several display home and even had appointments with some building companies to get ideas and quotes but every one of them are relying on you to have a block first. but i think that a block should come second, because we would need to budget what we want from our home first, then when that has been organised we would have looked for the size and place that we need our block to be. what do you think? thank you for taking the time to read this rant, im sure i have a million more questions but i think l'll leave it at that for now. Re: (ADVICE NEEDED) second time buyers but never built befor 2Aug 15, 2010 4:05 pm Hi, I cant answer too many of your questions. Firstly, who is Keystart? Possibly if they can't help you, could you try a different bank to borrow from? I don't believe there should be any issue with you purchasing land and signing a building contract with your mum. You'd probably just have to opt whether to be joint tenants or tenants in common. I can't see it would be any different than an unmarried couple buying together. Just my opinion though. I think you could either find a block of land that you love and then find a house to fit on it, or pick the perfect house, and then find a suitable block. I cant see that it matters which order you do it in. good luck with it all. contract signed: Nov 09 Released to Construction: 23 Jul 10 Slab poured: 9 Aug 10 Frame completed: 30 Aug 10 Windows & Gutters: 7 Sep 10 Bricks: 15 - 23 Sep 10 Roof: 24 Sep 10 Gyprock: 20 Oct 10 Lockup: 25 Oct 10 Kitchen: 27 Oct 10 Tiling: 6 - 9 Nov 10 Painting: 17 Nov 10 Carpet: 30 Nov 10 PCI: 15 Dec 10 Handover: 17 Dec 10 https://forum.homeone.com.au/viewtopic.php?f=31&t=35943 Re: (ADVICE NEEDED) second time buyers but never built befor 3Aug 15, 2010 11:29 pm im not sure about the other sates but WA has a low income lender called keystart. that is who i when through for my loan.. at the time they had offered up a 70/30 share which means the buyer owns 70 percent of your house even if you have a loan and 30 percent is from where keystart owns.. its a great system to be quite honest. and i was going to build before i bought a place but i was talked out of it.. how stupid am i.. lol. Re: (ADVICE NEEDED) second time buyers but never built befor 4Aug 16, 2010 2:19 pm Look at some House & Land packages. Cant help with the finance side sorry. Site Start: 10th September, 2010 PCI : Friday 27th January, 2011. Handover: 3rd February, 2011 Build Thread: viewtopic.php?f=31&t=37677 Re: (ADVICE NEEDED) second time buyers but never built befor 5Aug 16, 2010 2:47 pm IMO there is no point looking at a house design if it wont fit the block of land you can afford. Nothing worse than having your heart set on a house only to find out you cant afford the right sized block of land to build it on. Getting a house design is the easy part (relatively speaking), getting the land is a bit tougher - I'd suggest securing a block of land first. As for the finance side of things, you can buy a house with your mum no issues but her outstanding debts are gonna be a hamper to obtaining finance. How much equity do you estimate you have in the current place (taking into account you lose 30% of it)? How much you looking to finance? Where in Perth are you looking to build? Most banks now want to see at least 5% genuine savings (or equity) - with Perth prices it adds up quickly. Re: (ADVICE NEEDED) second time buyers but never built befor 6Aug 16, 2010 3:13 pm Can't help much with finance other than to say that you should have no problems obtaining a loan with your mum just because she is your mum. The bank couldn't care less how you are related. All they want to know is can you afford to pay it back. In terms of the land before the house issue as said before, there's no point picking a huge house only to find you can only afford a small block. Also remember that not all blocks are necessarily square, they may have restricted fronts or be an odd shape that will not suit all building designs. In addition to this you will find that the builders salespeople want to make a sale. If you don't have a block they don't want to waste too much trying to sell you something. I'd suggest you continue visiting builders to find out which ones you like in terms of house designs and potentially get some prices so you know how much you will be up for when the time comes, just don't expect too much assistance from the salespeople (personally I liked being able to look through the different designs without the pushy sales pitch every time). Nick and Lauren Milano 30 Build | http://build.nlturner.com HomeOne Thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=35887 Re: (ADVICE NEEDED) second time buyers but never built befor 7Aug 16, 2010 7:56 pm It doesn't hurt to have a good idea of the house size you want first (W x L). We bought our block after looking at houses for a long time (yet hadn't found "the one"). After buying the block I realised I loved the "fatter" houses (wider at the front but shorter on the side - requiring land with 16m frontage but maybe only 25m long). When we finally found what we thought was "the one" our block was 48cm too short (width ways) to fit it I'm not sad about it now cos eventually we found the perfect house with a fantastic local builder. But it takes a lot of looking to know what you'll like. Good luck! Sizz View Thread: viewtopic.php?f=31&t=35699 Building with Aaron J Homes - Sahara 25 Land Settled: 11/6/10, Site Start: 26/11/10 - HANDOVER NOT TOO FAR AWAY!!! Re: (ADVICE NEEDED) second time buyers but never built befor 8Mar 23, 2011 3:17 pm hi there, been a long time seince i last posted. well here is my update. some good and some quite bad new. first thing is keystart has reopend the shared equity and i have spoken to them about it wich is great so my problem there has been solved the downside to that is forking out for them to do valuation for the property. as they get a choise weather to purchace back or i can be given the chance to put it on the open market but if they offered me a little bit more than what i origionaly put up for it then i would consider taking their offer and save hundreds of dollars advertising with an agent. secondly the finance with my mum, she filed a complaint and has disputed her debt with veda and turns out they agree with ge finance so she is taking it further. but as it happens she is now been told to move from her homeswest housing as she earns to much. i have offered her to live with me for the time being but she wont as the place i have is far to small, my brother and his gf already crammed in and now have a baby. she cant get a loan because of the debt wich it is only a measaly 1800 i feel so bad for her. im not sure about finanaces well saying i own 70 percent share of my house i have 167,000 equity and a 47k loan wich is rapidly dropping over the last few years. im also in a pension thats why i took a shared equity loan. block sizes im quite happy to have a small very low maintence back yard after being in my place the yard is simply to much for me to handle but i do want a bigger house with at least 1 minor bedroom to accomodate a queensize bed for either my mum or me.so im not fussed if a house takes up much of the land so long as i have enough room to stick a spa in it at least. i have a few plans picked out and i have a good idea of a budget and thinking mabe a smaller place with bigger bedrooms 2 bathrooms lounge/theater nice patio, study and mabe a games room if i can fit in my budget. if anyone has any advice or has sold or in the process of selling their keystart shared equity home i would love to know how you processed with that. thank you Re: (ADVICE NEEDED) second time buyers but never built befor 9Mar 24, 2011 2:32 am Perhaps you could chat with a broker regarding the best way to go about getting a loan for you and your mum? They will help you work out if and how you could get a loan. One thing to keep in mind is that if you keep the property you currently have and build your new one at the same time, or even if you have sold your current property and are renting elsewhere, you will be paying your current loan or rent, plus the additional loan payment as the progress payments come out of your loan - just something to keep in mind as a lot of people struggle with 6 to 12 months of double payments during construction. Your earlier post asks if you can have a contract with your mum - absolutely you can! I work at a Perth builder and we get lots of parent/children contracts, or even 2 siblings together on the contract. There are a few reasons that the sales person would tell you to find a block before looking at a home - - because they know they won't get a sale out of you any time soon - because you may choose a home that won't fit on your block so would need changing/re-pricing anyway - because depending on the block/area you choose, your siteworks could be as little as a few $k up to $20k or more, on top of the house price. Having said that, there is nothing wrong with having a look at house plans that interest you and asking what the basic price is. Then you can see what the house area is, and work out what your minimum block size needs to be. You are restricted in how much land you can take up with your house, in general most shires only allow your house to cover 50% of the block, although some shires will allow a little more, perhaps 55% site coverage. Besides that, it's always fun to look at display homes and find more dream ideas Re: (ADVICE NEEDED) second time buyers but never built befor 10Mar 24, 2011 3:26 am hi there CA3105 thank you for your advice i have tried to speak to a few brokers, usually they are not interested are not in the office wich is a total bummer. at first i was thinking i keeping my property and my mum and i were going to share a loan and use my current property as collateral and get a investment loan, she earns considerably more than i do so it was somthing we had set our eyes on. a local sales man and his nice bussiness wife chat with us about that but i think at this point in time its out the window for now at least, but definantly somthing i do wish to do at some point down the track. mum and i have sort of an idea for now at least seeing as her debt clears somewhere around next april/may she is willing to get a loan and purchase my existing property wich is great it stays in the family and suits her more than me and i will still have a place to stay while im building. so from the sale of that would ultimately be put towards building my dream then we do have a possabilty from as above, we then would have two houses between us and use one or both as collateral and apply for an investment loan. is that possible? im sure it would be how else would developers get there way round lol. thank you for everyones advice its much appriciated Re: (ADVICE NEEDED) second time buyers but never built befor 11Mar 25, 2011 10:27 pm Get a broker over before agreeing to anything. Selling a house costs thousands, not hundreds. You may have trouble getting a loan on a pension. And you will have to pay stampduty - and pay for mortgage on land and progress of the building stages. Re: (ADVICE NEEDED) second time buyers but never built befor 12Apr 17, 2012 4:18 am Hello Everyone its been a long time since i last posted but i have some good news YAY!! its now april, and my mum has discovered that her debt was cleared 2 months ago grrr lol but really happy all the same im happy for her. now we are house hunting big time. as for my house my feelings for it still stand, im not in love with it. we have spoken to brokers, keystart, builder pretty much everything for input. we could build but that would mean i would have to take out another loan from a proper bank to buy out the 30 percent keystart share and that did not fit well with us as the mortgage would then be around the 1200 mark. i was still thinking of selling but the market has crashed quite a bit and i would loose a lot of my equity if i did so the only option we are going with for now is mum is buying a house on her own. but with an advantage, she gets what we both like/love and option of me moving in there and she stays at mine. or we could after a few months take out against both houses to build but that is at a stand still as well. the building industry has hit rock bottom, increased house prices for rediculas plans. waiting waiting for the market to go up more to sell my property off. mother dearest has unofficial pre aproval for around the 300k shared equity with goodstart, its a part of keystart but middle income earners. we are waiting on the paperwork for her to fill out and send off so i hope it doesn't take too long to approve. there has been some nice houses out there that have sold while we are waiting. we inspected 1 property last wensday and all i can say about it was disgraceful. 4x2 with spa and pool for 320k...errrm more like a disgusting dog poop covers every surface, filthy teen kids, the house was a pig sty. nice big smashed and cracked window in the master bedroom which we could not get into as the owner locked the door hrrrm isn't that a sign enough. it had a really pokey lounge room which did not fit much in it. the family/dining only fit a dining table a fish tank and a large side by side fridge. the 3 minor bedrooms had a good positive about it, each had a skylight in them but that was it, poky tiny room barely fits a single bed. wrap around closed in patio along 2 sides of the house was falling apart the pool was lovely except the pump was so noisy it sounds like it was going to blow up, i think the two best features to the place was the nicely done kitchen and the patio other than that it was a dump. false advertising and alot of work to do to it. and the agent had the gall to call me back after seeing that filth was beyond me. i told her that it was far too small, too much work and disgustingly filthy and not worth my money i wouldn't put an offer anything over 250k. so back to the drawing board, waiting for paperwork. wish it would hurry up so i can go see more BETTER houses. 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