Browse Forums Home Finance 1 Jan 23, 2011 3:24 pm hi guys, we are planning to buy a land which will be registered late this year. my question is do we need to apply for a loan for the deposit even though we have the enough deposit to pay for it? and save up for our future loan before the settlement date? thanks in advance Re: planning to buy a land which will be registered later 2Jan 24, 2011 12:22 pm Ideally you should apply for the loan now, and make your contract "subject to finance". Once finance is approved, then you pay the deposit out of your own money. The bank won't give you a choice - you have to use up your money (however much you declared to them as your savings) before they will start lending you anything. We paid both our land deposit and house contract deposit ourselves. Land settled after we paid the house contract deposit, and that's the first money we saw from the bank. 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: planning to buy a land which will be registered later 3Jan 25, 2011 4:19 pm kornjen hi guys, we are planning to buy a land which will be registered late this year. my question is do we need to apply for a loan for the deposit even though we have the enough deposit to pay for it? and save up for our future loan before the settlement date? thanks in advance If you already have the deposite amount then no you dont need to apply for a loan as such, but you can if you want- personal preference and depends want to do with the money. Advantage of borrowing the deposit: 1. If its used as a investment property- you have the tax advantage - this won't be the case if you used your own funds - as only INTEREST is tax deductible 2. Can use your own funds for another uses? another investment were banks wont normally lend money on - shares?, buying a car, save up for emergencies? As a mortgage broker, in your situation i always suggest to my client to get a "deposit bond" instead of bowwowing the money from the bank. Deposit bond is simple- it cost around $220-$400 on average, the deposit bond company will issue you with a " 10 % bond" which ALL real estate and building company accepts. At settlement you pay the Deposit bond company the money when your property settles or at a agreed time. Advantages of Deposit Bond: 1. Tax advantages - same as above 2. Set cost, not charged by interest 3. You can use your own funds as emergency cash up to the settlement period. 4. If for some reason the "registration" of the land does not go ahead and some problem comes about- instead of losing your 10% despite money, you only lose $220. PM me for more details. Cheers Michael - ShapeHomeLoans Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: planning to buy a land which will be registered later 4Feb 07, 2011 12:55 pm Just to let you know any loan that is approved now will be subject to re-assessment prior to settlement. This is not just a valuation, but also a full review of your situation.' In other words if you lose your job, change jobs, take out a car loan etc between now and the settlement of the land then you may find your loan declined at the last minute. This is one of the risks of buying off the plan / delayed settlement sub-divisions. As long as you are aware of these risks then you can proceed at your own risk. In most cases it is fine and nothing goes wrong, however it is not entirely risk free. Give Jonathan a call. Tell him you know me. He is in my opinion the best surveyor I have ever worked with. His number is 0425 285 622 All the best Simeon 3 13084 I am not based in Victoria however i had a quick look into your question to understand what you were asking. The way I read the regulations, overshadowing relates to the… 1 2709 "is it exempt or do I need to get permission from council" Call your Council and ask them 1 2313 |