Browse Forums Home Finance 1 Jul 12, 2010 6:37 pm i have bought my block of land a few months ago, payed stamp duty and a deposit on it, my confusion ****** with building.. do i now have to pay another deposit and stamp duty to build a house on the land or do i just get the money from the bank. im a first home buyer so i was hoping i dont have to pay a deposit again so i can put it into the house instead.. Re: confusion on building 2Jul 13, 2010 9:26 am We only paid stamp duty on our land - i am pretty sure your safe and that you will not need to pay stamp duty again... Re: confusion on building 3Jul 13, 2010 10:41 am You pay stamp duty on purchasing land, but not on signing a building contract. So there's no need to pay stamp duty again. There will be a deposit on the building contract, but both that and the land deposit should go towards your LVR with the bank. The deposit is your money btw - it doesn't matter if you pay it now or later, or if it's a bit bigger or a bit smaller, you are still getting value out of it. The stamp duty however goes to the government and you get NOTHING for it, so you want to minimize that as much as possible. Buying land and then building minimizes stamp duty, as you pay it just on the land, not on the house. Metricon Riva 33 - http://herlihy-riva.blogspot.com Site start 15/03/2010 - Handover 23/12/2010 9 months and 8 days (284 calendar days) from site start to handover Re: confusion on building 4Jul 13, 2010 11:06 am There is no stamp duty on the construction contract. As for the deposit for construction it really depends! If you paid a large deposit on the land when you purchased it then your lender should be fine to lend you 100% of the cost of construction in which case you will only need a little money to pay for the pre-contract costs. If you didn't put in a large deposit at the land stage then you will need to put in a deposit at the construction stage. As a rule of thumb if you paid LMI when you purchased the land then it is likely that your LVR is too high to allow you to borrow the full cost of construction without a deposit. Re: confusion on building 5Jul 30, 2010 5:04 pm jb_money There is no stamp duty on the construction contract. As for the deposit for construction it really depends! If you paid a large deposit on the land when you purchased it then your lender should be fine to lend you 100% of the cost of construction in which case you will only need a little money to pay for the pre-contract costs. If you didn't put in a large deposit at the land stage then you will need to put in a deposit at the construction stage. As a rule of thumb if you paid LMI when you purchased the land then it is likely that your LVR is too high to allow you to borrow the full cost of construction without a deposit. When you say "large deposit on the land", how large do you mean? 20%? 50%? Re: confusion on building 6Aug 02, 2010 11:34 am It is very much a "how long is a piece of string" question. It would depend on the lender policy, how much the land was, how much construction is etc. As a general rule if you paid a 20% deposit on the land then you are unlikely to need to put in additional funds when you build, as long as you don't mind paying Lenders Mortgage Insurance. Hi All, see above image. The required setback from the rear boundary in my case is 5m, as you can see the shape of the site and location of the boundary is slightly… 0 8451 go upvc window frames ensure insulation under colorbond. not just sarking, lighter color roof also not sure if you have seen this viewtopic.php?t=5823 last couple of pages… 4 110567 |