Browse Forums Home Finance Re: Paying 5% Deposit on land 3Aug 10, 2012 3:34 am The 5% also needs to be classified as genuine savings. Re: Paying 5% Deposit on land 5Aug 11, 2012 11:07 pm Hi DenBer. Our total deposit for our house/land package was $12,000. We gave $2,000 to the builder and then $1,000 for the land to put the deposit on it. At settlement, we handed over the other $9,000 and the receipts showing the other two payments made. $12,000 was our total 5% deposit. Hope that helps Re: Paying 5% Deposit on land 6Aug 12, 2012 9:17 pm So if the party you are buying the land from are requesting 5% deposit upfront, you pay them the money and they give you a receipt. When you apply for the loan, you provide the receipt as part of the supporting documentation showing you have paid it, and it will count as part of your funds to complete. Re: Paying 5% Deposit on land 8Aug 17, 2012 2:05 pm Just be careful to make sure the bank has acknowledged funds paid to the builder so they can adjust the net amount available for your loan settlement. For example if you paid $4000 to the builder and the bank did not adjust for this, the bank would hold too much for construction (banks hold back 100% of construction cost from a house and land package loan). They would need to adjust the amount held for construction by the deposit paid so you get that extra $4000 advanced when the land settles. Hope this makes sense as i would hate for you to find yourself short on land settlement. In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 3286 Hi, This is my first post. We are planning to buy new home via House and Land (H&L) Package around Boxhill/Gables/Marsden Park in Syndey. Googled reviews for most of… 0 10521 Very good points. Thanks so much ponzutwo for your advice. Appreciate it. 2 10411 |