We have purchased a land and have got land loan sorted out through CBA directly. The land is going to be titled in August and as there was a "subject to finance clause" we got conditional approved loan from CBA. The only condition is the valuation of the land before it gets titled. If all well then its great.
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We are talking to few builders in terms of building house on the land after it gets titled. I am confused about Construction loan. I want to get Driveway, Downlights and fencing done before we move into new house. After speaking to some builders sales guys, they advised that it is better to get driveway , downlights and fencing done through 3rd party as it will be cheaper for us.
I spoke to CBA and they advised that they dont accept 3rd party quotes but only build contract will be looked at when applying for construction loan.
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I spoke to 1 small builder and they are ready to put that in the contract and at the end they will give that money back to us less GST but i have to provide them with the invoice. For that I need to have an ABN to provide invoice which in turn it is going to be an income for me and then i have to pay taxes on that. So what it means to me that either we do it externally or through builder more or less it is going to cost the same. This is quite complicated
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We are really confused as to how do we move forward to get everything done from our loan. The reason we want to get everything done from our loan is because we have sufficient savings but what if something goes wrong we wont be in position to get them done afterwards.
we also want to get the loans sorted through 1 lender and going through the forums i have noticed there are not many lenders/banks who are ready accept the 3rd party quotes.
please advise and thanks in advance