Browse Forums Home Finance 1 Jan 14, 2011 8:19 pm Hi guys, We just moved in here in Australia and I've been working for 6 months.. and luckily me and my wife got a fairly good job... my concern is we are planning to buy a land and was wondering if there is a good chance for us to get a loan to buy the land.. and build a house soon... what are the steps to buy a land? do we need to look for a land first before applying for a loan? or vice versa? also, we are planning to apply for a loan just for the land first, is it okay and apply additional loan later to build the house? or loan the total amount of the house eventhough we plan to build soon? advises are welcome... thanks... Re: buying a land... and build soon... 2Jan 14, 2011 8:25 pm As someone who came to Australia 20 years ago I think you have made the right decision. It fine to buy the land first and then have a house built later. Thats the way we have done it it with our present house as we saw a block too good to miss. We actually had two mortgages one for the house and one for the land. The only problem is that unless the block you are buying is very big buying the block will limit your choice of home you can build. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: buying a land... and build soon... 3Jan 18, 2011 12:50 pm We bought the land first and then converted it into a construction loan when we started building. It's do-able, but you might want to get a competent mortgage broker to help you through it. We had a competent one and she basically handled everything. Do be careful about costs of building on your block as well. Fill, fall and rocks can make building much more expensive. If possible get a soil test done before you buy the land, and take it to someone who understands what impact that soil test has on building a house there (such as a builder who you might build with later). If you buy land first it's easy not to notice these things. 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: buying a land... and build soon... 4Feb 18, 2011 12:40 pm Another thing to consider is most/probably all lenders won't let you use an offset account during the construction phase of your home. So it's best to have 2 loans, 1 for the land and attach an offset account to that, 1 for building and then merge the two together after your house is built. Re: buying a land... and build soon... 5Feb 21, 2011 2:25 pm Welcome kornjen, applying for consutruction loan: 1. Speak to a mortgage broker or the bank to work out how much you can borrow/ service 2. Find the land you like- make sure it's within the " accepteable postcode" - ask the broker/ bank 3. Find a builder to work out how much it will cost to build ( at a FIX price! very imporant) The bank will normally lend up to 90% for the total price of the land+ fix building cost. Tip: -> make sure you have spare cash in case of any pit falls or shortage ( ie maybe there was a rock under the soil that the builder did not know abt - $5,000....) -> make sure the buiding quote is the FULL quote including the internals and connection of electricty and plumbing etc...and at a fixed price Later tonight i will post a more details "checklist"...but this will do for now Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au https://form.jotform.com/240284569218058 Please spare a moment to fill out this survey form for a project. You stand a chance to win a digital gift voucher. Legitimate… 0 2823 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 6441 2 5502 |