Browse Forums Buying Land 1 Mar 21, 2015 4:10 pm We're looking at buying land in a development that may settle quite late this year. I know when we purchase we need to pop down a 10% deposit. I think this means the other 90% isn't paid until settlement / titling. Im wondering if anyone knows if this is generally the case? We are keen to hold onto our original home as long as possible. Re: Buying land that may take awhile to settle 2Mar 21, 2015 5:13 pm I'd be reluctant to even put 10% down if you can get away with it . My outlay is only $1K, plus $4K on 'works completed' which equates to 3%. I then have 21 days from when titles are issued on top of that to settle. Re: Buying land that may take awhile to settle 3Mar 21, 2015 5:54 pm lukevl We're looking at buying land in a development that may settle quite late this year. I know when we purchase we need to pop down a 10% deposit. I think this means the other 90% isn't paid until settlement / titling. Im wondering if anyone knows if this is generally the case? We are keen to hold onto our original home as long as possible. I placed 5% down on a $197,00 block last June or July. Still no title but Title due April and then I have 14 days to pay for land after Title is available. That is our settlement terms. I think what I have done is standard practice. Re: Buying land that may take awhile to settle 4Mar 22, 2015 6:27 am We are the same as goody59. Our contract said we had to pay 10% but the solicitor put a special condition for us to pay 5%. Then we have 14days after land is registered to pay our 95% balance. Re: Buying land that may take awhile to settle 5Mar 22, 2015 9:24 am Hey there. Welcome to a terrifying and exciting journey As the others have said, try to only lay down 5%. When I first spoke to my land sales person, they told me I had to put down $1,000 to hold the land, and then pay the balance of 10% deposit within 7 days and sign the contracts at the same time. I backed away. I then got a broker, and a conveyancer to help me, they told me that was a lie and I could negotiate. I ended up paying $1,000 to hold the land, then got a copy of the contract to review. I signed the contract which included a finance clause which said my bank had 21 days to approve my finance, and if they didn't approve it I could back out of the contract and get all my money refunded. At 20 days the bank approved my finance and I paid the balance of 5% not 10%. You can try to negotiate. This was in July last year, with my settlement expected in April 2015. My settlement date has been moved to July 2015, with more delays probably likely. When settlement finally comes around, my bank will pay the balance of the purchase price to the land estate and I will become the title holder. This is also when I start making loan repayments to the bank for the land purchase price and when I can start building my house. Hope that helps Re: Buying land that may take awhile to settle 6Mar 23, 2015 11:23 am Look into a deposit bond. Basically a bank guarantee and costs only a few hundred dollars. You can exchange on that rather than tying up your money. Re: Buying land that may take awhile to settle 7Mar 30, 2015 7:18 am Hi there... When we deposited for our land purchase, we put down $2k back in March 2014 as initially it was house and land package. At the exchange of contract stage the vendor accepted deposit bond so that was an advantage for us so we didnt need to draw the equity from our current home to pay for the 10% deposit, with the deposit bond you dont need to pay any interest so even if there was a delay in title registration it wouldnt cost you. We also had to pay stamp duty in june 2014 even though the land was not registered yet, settlement did not occur until late November of last year. I thought this would be a popular question but I haven't been able to find any similar posts. Perhaps I'm wording my searches wrong? When you have car insurance and the… 0 6619 I engaged my builder in December last year and we’ve been working on preliminary drawings for last couple of months. I got a call from the salesperson this morning… 0 563 Yeah I don't know why I came to a forum. Place is full of wierdos/pedos thought internet may help but I suppose I'll try my luck with someone in person. Cheers. I tried… 0 6444 |