Hi all,
I've made a few threads in the past, but it's finally crunch time. I do have a broker, but I basically need assistance to get my head around everything before I talk to my broker again. I have decided to take advantage of the $26,000 to build my first home.
I have put a $1,500 deposit down to the builder, and $500 to the real estate agent for the land (including signing the land contract, I now quickly need to find a conveyancer).
Here are the prices I now owe (these are prices with deposits removed):
House: $144,000
Site Cost: $12,000 (estimate)
Land: $107,500
Total: $263,500.
(I'd expect a total loan of maybe $270,000 including fees, MLI etc?)
I have $20,000 in savings, and would expect to have around $23,000 by the end of June (land settles on the 26th June).
My broker wanted to do a 5% lend, using my own cash, then using the rest for stamp duty & fees. Then I get the $26,000 FHOG back later to dump straight onto the mortgage (banks really seem to have tightened things down lately!).
Now this is where it starts getting complicated... and where I need some help.
The real estate agent wants a 10% deposit of the land ($10,300) near the end of May (one month before settlement). The agent said it was best to use a deposit bond for this, to make it easier for obtaining the loan.
And this is where I get confused...
My broker, on the other hand, said a bond isn't really needed... But if I pay $10,300 in cash, then I wouldn't have enough left over to cover the 5% for the total amount, plus stamp duty + fees?
How do people do this normally?
- Gareth