Browse Forums Home Finance 1 Aug 28, 2013 6:25 am Hi guys just scraped together $10k, hoping to purchase a block in the coming weeks. looking at spending $125k on block, going in @ 5% with CBA. What are the chances they'll evaluate the block at $10k more than i pay for it, reason being it's a well established estate & they've dropped the price of these blocks in recent months by $8k. Only reason i ask, i don't have the next 5% required for construction loan and I'm impatient will be spending in the vacinity of $240k on house & that higher evaluation could be equity towards construction? So to sum things up, once block purchased I've gotta find another $12k on a single wage with two kids paying rent @ $360 per week. not going to happen overnight..... Thanks in advance for your input. Re: What are the chances... Land Loan Equity??? 2Aug 28, 2013 6:30 am I don't know what others would do in this scenario, alternatively I've been told i could borrow x amount from parents and use towards construction IE save $5k & borrow $5k. I'm confident i don't need a savings history here, lender assures me i can use rent history as a means of saving? Was trying to avoid this, as you can see i just want to get the ball rolling as we are paying quite a lot in rent. Re: What are the chances... Land Loan Equity??? 4Aug 28, 2013 6:50 am I don't how likely it is that the bank would value it at 10k more, traditionally their valuation would always be on the conservative side but it depends on who they use to do the valuations. Perhaps others that have recently purchased in the area could tell you how the banks have determined their land value. Regardless I wouldn't let that put you off, its still a long road to a build. When is registration due (and this is often delayed)? Even if land is registered by the time you get to the signing contract stage there is still likely to be some months between now and then. Normally I would be suggesting that people don't push their finances and they've just "scraped together" $10k that they are going to get into trouble fast but I think in your circumstance you appear to know how to budget and I would keep it going for you and your kids. http://camdenbuild.blogspot.com.au/ by invite only please pm me Re: What are the chances... Land Loan Equity??? 5Aug 28, 2013 6:57 am Thanks Robbie, if you mean registered by titled, then yes they've been released. There's new homes built in this stage of the estate. I do agree with the whole not stretching finances, may be better waiting. Or even avoid purchasing land until we have the deposit for construction to avoid the land loan interest for that period of time. I don't know..... Re: What are the chances... Land Loan Equity??? 6Aug 28, 2013 7:06 am Maybe you could ask for a delayed settlement. If they're prepared to do so it means you'll still have more time to save but still secure the block. http://camdenbuild.blogspot.com.au/ by invite only please pm me Re: What are the chances... Land Loan Equity??? 7Aug 28, 2013 7:57 am They will not value it over the purchase price unfortunately. Think about it this way, if the vendor could sell it for more then they would. Therefore the current market value isn't more than you are paying for it. Instead the bank would value all the other blocks at the same price as yours! You can't use your cars as collateral however if you are happy to buy the land, wait six months and then apply to build then some lenders can give you a $20k extra unsecured loan which will help you out. You will need to have a good income and be a AAA borrower to make that option work. Otherwise you can try a guarantor loan if your parents are happy to support you. They are very tricky when combined with construction however they can allow you to build right away and avoid LMI too. Good luck with your build! Re: What are the chances... Land Loan Equity??? 8Aug 28, 2013 11:47 am Interesting JB, think I'll scrape together another $5k then purchase a block. This way i can get the ball rolling, throw a deposit at the builders, choose a plan & site test the block write up build contracts. Then by the time this occurs hopefully ill have the remaining 5% for construction & will be able to apply for the construction loan. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19434 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35605 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 12058 |