Browse Forums Home Finance 1 Jul 25, 2008 10:43 am Hi All,
Does anyone know how hard it is to borrow for land and build? I have been told its alot harder than purchasing established, I'm guessing because they have more to secure against that way. Has anyone owner built (hire our own project manager) and found finance hard? We are looking at a borrowing amount of 80% so not sure what our chances are.. Kylie Re: Finance for building and or owner builder 2Jul 25, 2008 5:19 pm Before kids I was a lending manager with Westpac and from their rules - owner builders are lent a maximum of 60% - they also have to pay for additional inspections by independant valuers / engineers plus the build has to be completed within a 12mth timeframe - no if's or buts! In 4yrs of lending I only had one person do it and he was a licenced builder with his own company - they still made him follow all the rules.
Much easier buying house and land package - basically is exactly the same as buying for a construction. They will only release the funds portion at a time - your 20% deposit is always used first then they release funds for land settlement then as per the builder's progress schedule. Most lenders will even go to 95% lend on house and lend - of course anything over 80% is then subject to the lender's mortgage insurance company which has the final say (and they aren't nice to deal with on the whole!) Kylie 3Oct 02, 2008 4:15 pm It is more difficult at the moment in general to arrange finance but I can arrange finance of up to 75% of the properties end value if owner building through Home Building System. Depending on postcode, you can still get up to 95-100% if you have a fixed price building contract. Subject of course fullfiling required criteria. The engineering is the engineering. It's irrelevant how much material you have. Unless it fits the requirements of your design the engineer can't "make"it work. You might… 7 9693 you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 57708 |