Browse Forums Home Finance Re: Borrowing: A kick in the teeth (and more) 21Jul 27, 2009 9:52 pm I know nothing about this but I was listening to the Real Estate show on the radio on Saturday and he was saying that most Real Estate prices are inflated at present so the FHOG really dosn't make that much difference because you are paying more for the property therefore it sort of cancels it out. I wonder if too much emphasis is put on the FHOG and if the prices will drop after it's ended? It sort of made sense to me. I am just saying that maybe if you keep saving and buy further on down the track, you may be in a better position? www.themaxbuild.blogspot.com forum.homeone.com.au/viewtopic.php?f=31&t=20717&start=300 www.leahspaperpassion.blogspot.com Re: Borrowing: A kick in the teeth (and more) 22Jul 28, 2009 2:51 pm themax I know nothing about this but I was listening to the Real Estate show on the radio on Saturday and he was saying that most Real Estate prices are inflated at present so the FHOG really dosn't make that much difference because you are paying more for the property therefore it sort of cancels it out. I wonder if too much emphasis is put on the FHOG and if the prices will drop after it's ended? It sort of made sense to me. I am just saying that maybe if you keep saving and buy further on down the track, you may be in a better position? Yeah but it ends up just being a circle.. if prices are inflated now because of the FHOG then that ends and prices drop then that brings investors back into the market and pushes prices back up again. Re: Borrowing: A kick in the teeth (and more) 23Jul 28, 2009 3:23 pm There is a good possibility that established prices will drop. However, I really don't think the cost to build new will drop - the builders simply cannot afford to do that. I'd been poking around with the idea of buying land - and have a question. If for some reason I can keep my original pre-approval, what happens if I do want to buy land and build? What happens if I want to build one month AFTER buying land (assuming this is a regular home loan as apposed to construction loan). Re: Borrowing: A kick in the teeth (and more) 24Jul 28, 2009 7:37 pm Build rather than buy established. If you sell a new house you will get more for it than it cost to build. Suggest you go to another lender. Try RAMS or Aussie. Stay clear of the big 4 banks as they have changed their rules. Not all businesses have. Shop around. Good luck Re: Borrowing: A kick in the teeth (and more) 25Jul 28, 2009 7:39 pm jeraldo There is a good possibility that established prices will drop. However, I really don't think the cost to build new will drop - the builders simply cannot afford to do that. I'd been poking around with the idea of buying land - and have a question. If for some reason I can keep my original pre-approval, what happens if I do want to buy land and build? What happens if I want to build one month AFTER buying land (assuming this is a regular home loan as apposed to construction loan). We did this. Bought and settled on the land. Then have decided to build and are taking out a new loan for the house. Great as each of us will pay one of the loans. Works best for us as our land was quite expensive and will be nearly the same price as the house will cost. Re: Borrowing: A kick in the teeth (and more) 26Jul 29, 2009 10:39 am jeraldo If for some reason I can keep my original pre-approval, what happens if I do want to buy land and build? What happens if I want to build one month AFTER buying land (assuming this is a regular home loan as apposed to construction loan). Hi Jeraldo, If you were to buy a block of land and then build on it, the banks would require some further information. These include some of the following: Tender Stamped Council Approved Plans Construction Certificate Builders Insurance Builders Indemnity/Public Risk Insurance They would more than likely look at completing a Loan for the purchase of the block of land, and they would would at a second loan for the construction of your new property. (The second loan would require that the loan is progressively drawn down during the construction stage) It is highly unlikely that the banks would provide you with a Line of Credit for you to pay the construction company directly. The reason for this is that the bank would want to control where the funds are being sent. As well as that as the construction commences its building the Market Value of the Property. If you need some more detailed information, please don't hesitate to Private Message me. I hope this helps out a little. Cheers Trent Bartels Residential & Commercial Finance Broker A & B Financial Solutions ...Solutions for your future info@abfinancial.com.au http://www.abfinancial.com.au sydney mortgage broker 27Jul 29, 2009 3:46 pm Rowena Suggest you go to another lender. Try RAMS or Aussie. Stay clear of the big 4 banks as they have changed their rules. Not all businesses have. Shop around. Good luck I can't think of any lender that hasn't changed its rules recently. Especially RAMS which needs 5% genuine savings for home loans above 80%, and Aussie (apart from a couple of loan products of their own) is a mortgage broker as far as I am informed. I may be wrong but I am told by borrowers (and homeone members) who have had offers from Aussie that they offer the big 4 banks as well as other lenders, just like other mortgage brokers. Re: sydney mortgage broker 28Jul 29, 2009 9:43 pm thlo Rowena Suggest you go to another lender. Try RAMS or Aussie. Stay clear of the big 4 banks as they have changed their rules. Not all businesses have. Shop around. Good luck I can't think of any lender that hasn't changed its rules recently. Especially RAMS which needs 5% genuine savings for home loans above 80%, and Aussie (apart from a couple of loan products of their own) is a mortgage broker as far as I am informed. I may be wrong but I am told by borrowers (and homeone members) who have had offers from Aussie that they offer the big 4 banks as well as other lenders, just like other mortgage brokers. It was in response to banks changing the rules to require 10% deposit. While most of the major banks have done this, there are lenders in the market who have not changed their lending criteria. sydney mortgage broker 29Jul 30, 2009 4:58 pm Rowena banks changing the rules to require 10% deposit. While most of the major banks have done this, there are lenders in the market who have not changed their lending criteria. CBA, St George, NAB as major banks still accept 5% deposit subject to eligibility rules. When you use a qualified mortgage broker, they will advise which lenders are available for your given circumstances. Re: Borrowing: A kick in the teeth (and more) 30Jul 30, 2009 5:17 pm If it were me (and it just about almost was!) I would find some land in good location with a pricetag you could afford and get it while its available. I would then bite the bullet and live with the parents until I had some more cash saved up and go for the construction loan again. (once you have a $200k+ mortgage, the $21,000 will seem like bugger all anyway!) Another option, depending upon how serious things are with your GF, would you consider going into it together? This means the bank would lend you more money, and if you are both FHB's the grant would still apply Building 'The Kingston' (with 'Boston' elevation) through Blueprint Homes in Hocking, Perth **PCI complete 06.02.10** My Thread - https://forum.homeone.com.au/viewtopic.php?f=31&t=17607 Re: Borrowing: A kick in the teeth (and more) 31Sep 13, 2009 1:34 pm I wonder what happened to jeraldo. Re: Borrowing: A kick in the teeth (and more) 32Sep 30, 2009 12:20 pm thlo I wonder what happened to jeraldo. I've been very busy and very stressed. I gave up dealing with CBA. No one could tell me what the deal was with my pre-approval, and I couldn't get a figure on how much I could borrow. I've never encountered such incompetance. I rang up a Broker. He visited me the following day and got me conditional on a land and construction loan within the week - it was $40,000 more than what CBA was offering. I couldn't find a block of land I wanted (the one I wanted sold) and it was fastly approaching FHOG cut-off date. I decided that I would go ahead and buy established. I signed a contract on 19th Sep. The broker decided to change lenders (last week) as the loan amount had dropped considerably (got the house cheap!). As of today, we are just waiting to here back for unconditional approval, and for me to organise inspections. Re: Borrowing: A kick in the teeth (and more) 33Oct 01, 2009 2:50 am That's good to hear. At least you won't have problems with your valuation then, being cheaper and established. Re: Borrowing: A kick in the teeth (and more) 34Oct 09, 2009 3:58 am thats good to hear fabulous news... just remember theres always a light at the end of the tunnel. building heysen4e through SarahHomes at Milang IM THE PROUD OWNER OF DIRT house into council 22/08 Unconditionally approved 25/09 mortgage docs signed 29/09 land settled 09/10 land titled 22/10 start date about two weeks away!!! http://www.mymilangbuild.blogspot.com/ I would be wary. Is you site demilished but nothing else done? Sounds like liquidity problems to me. Our builder did the same. Got hundreds of thousands of dollars of… 2 15409 Can someone please offer some advice? Im DESPERATE. Because I'm completely and utterly exhausted. How long are variations taking with other companies at the moment? We… 0 18473 |