Browse Forums Home Finance 1 Nov 16, 2010 6:50 pm Hi everyone, My wife and I are really keen to buy a house and land package, or alternatively, a block of land and then build at a later stage. Our total budget is roughly $400k. Our current financial situation is as follows: * No debt whatsoever * Savings of $1000 (yeah laughable I know) * 2 x cars * Currently renting, but shortly living with my wife's parents, rent free to save I went to a few estates that we like and found some decent blocks for around the $200k mark, and would really like to put a deposit down to secure the land (title won't clear until September 2011, so plenty of time to save money and organise a loan later), but the estate says that we need to make an initial $1k deposit to hold the land for a week, then after the week, pay the remaining deposit of 10% (so $19k in addition to the $1k), and then the balance ($180k) when the title clears. I understand that the bank would laugh at us if we asked for a loan at the moment, but is there any such builder (like Porter Davis, Metricon, etc) who could offer house/land packages that would allow us to make the holding deposit (say $1 - 2k) and then closer to the date of the land title, we arrange finance (no issues as we would have over 5% of savings)? I'm aware of no deposit homeloans if parents go guarantor, but we'd rather not ask them (don't think they would anyway). Is there any other way, or are we just going to have to wait until we get the $20k for the land deposit? Any help would be much appreciated. Cheers Re: Buying land with small deposit, can it be done? 2Nov 17, 2010 4:24 pm Hi McLovin, It's great to see you doing some thorough research prior to choosing your builder. Do you currently have any ideas as to where you would like to build? Also, have you had the chance to check out any display homes to see what designs interest you? I'm sure one of our sales staff will be able to help answer any questions you have surrounding building. If you want to send me a private message with your Name and Phone number I can get a sales staff member to contact you & have a chat. For now, I suggest you continue with the research. Have a look into the current promotions builders are offering , have a chat to a mortgage broker about your finance options and visit some display homes to chat to the sales staff and see what your options are. Good luck with everything. Cheers, Jess. Porter Davis Homes Questions? Call 1800PORTER Mon - Fri 9am-8pm Sat - Sun 10am-4pm info@porterdavis.com.au http://blog.porterdavis.com.au/ http://www.porterdavishomes.com.au Re: Buying land with small deposit, can it be done? 3Nov 17, 2010 5:12 pm Thanks for your reply Jess, much appreciated! I've sent you a PM. Anyone else have any bright ideas? Wonder if getting a small personal loan would be an idea to secure the land sooner too? Re: Buying land with small deposit, can it be done? 4Nov 17, 2010 5:31 pm McLovin Thanks for your reply Jess, much appreciated! I've sent you a PM. Anyone else have any bright ideas? Wonder if getting a small personal loan would be an idea to secure the land sooner too? a lot of land developers these days require you to sign an "unconditional" contract which means you need to pay your 10% deposit for the land and the contract cannot be subject to finance, you need to be pretty sure that you aren't going to have any problems obtaining finance in the future before you lock yourself in to something like that. Most major builders will require you to have pre-app from the bank or go through their mortgage brokers before proceeding. whereabouts are you looking for land ? Re: Buying land with small deposit, can it be done? 5Nov 17, 2010 5:35 pm Hey Rellie, we're looking at the Cranbourne / Clyde areas in Melbourne, Victoria. Thanks for the tip RE the unconditional finance thing, we'll keep our eyes on that one. I work with owner, he/she is my man on the ground and I instruct them when to visit the site and take photos and I have other tools in the bag. 4 15265 Depends what you're current inclusions are, but we're not including wardrobes and will just use second hand ones until we can save later on to get them built. Also have a… 3 11629 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 6435 |