Browse Forums Home Finance Re: Building a house with a Mortgage 5Sep 24, 2018 10:38 pm Hello - I think there was a case on the TV recently where the development exceeded the 'sunset clause' date and the developer rescinded the contract (effectively cancelled it, handing the deposit back) and the buyers were indeed left without the property, perhaps your husband has been spooked by this. Its worth asking your solicitor for advice on this, as it can happen. Unfortunate as it is, it can happen whether you own a property or not, it isn't common and lawmakers are working towards building in protection for buyers - I see you are in VIC, this is one of the few states where this protection doesn't already exist. The risk of not being in the market is quite separate to this and is more about a rapidly rising market. The flip side of this is if you don't sell in time will you still qualify for the loan you need to buy the property? If you will (even allowing for potential lender changes) then all the choices are yours. Realistically there is no "need" to have a property, you may choose to buy something else if that property doesn't eventuate - its about the bigger reasons for your purchase rather than this one property or the one you are in now - but if you are only selling to buy this property then maybe it does make sense to stay put for now and throw all your extra money against the loan which then makes more equity out of your sale Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Building a house with a Mortgage 6Sep 25, 2018 10:20 pm Thanks Bec, appreciate your response. Yes I think my husband was referring to that case. The developer of our chosen land had other developments too in the last few years and they were all on time but unexpected things can happen so still unsure until settlement has been completed. In relation to loan, we have slightly exceeded with the build estimates due to upgrades so I think selling the property can definitely help us qualify for the loan and avoid having to pay for LMI. We can probably start selling the property when there is a clear indication of land settlement or when the land development is nearly on its completion stage. Re: Building a house with a Mortgage 7Sep 25, 2018 10:22 pm Melbournevic Thanks Bec, appreciate your response. Yes I think my husband was referring to that case. The developer of our chosen land had other developments too in the last few years and they were all on time but unexpected things can happen so still unsure until settlement has been completed. In relation to loan, we have slightly exceeded with the build estimates due to upgrades so I think selling the property can definitely help us qualify for the loan and avoid having to pay for LMI. We can probably start selling the property when there is a clear indication of land settlement or when the land development is nearly on its completion stage. There you go, there’s a plan. Just be mindful of changes in the market & not coming unstuck. Well done & enjoy the process! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Building a house with a Mortgage 9Apr 17, 2019 1:53 pm Hi everyone, we bought a land in 2018 and settlement will take place in the next few months. We are planning to sell our current home. We plan to rent an apartment for the meantime once the current home has been sold and while the new house is being built. Our agent has suggested to reduce the pricing due to the market being tough nowadays, but I'm feeling uneasy with the price reduction of almost $100k since our property has more added features and upgrades into it compared to other homes in the same category in the market (e.g. land size and house size, location). If we sell with the price that we wanted, it's just break even as we've spent a lot of money in this home. If we sell less than $100k, do you think it's such a big loss or it isn't since we no longer need to continue the mortgage here? If we don't sell the house, we can either sell the land or continue to pay the land and sell the home later on when the market gets better, but I'm unsure for how long and with the costs of having to maintain two mortgages is a sacrifice too. We are not planning to rent out the current home as it's not worth it. Or worst scenario, don't sell the home and sell the land and stay with the current home (although I really love moving to a new home, but if I have to sacrifice as it's not worth selling the current home then I should accept this). I wanted to get your inputs so we can weigh the best route. Thanks for your inputs. Re: Building a house with a Mortgage 10Oct 19, 2019 1:55 pm Hi everyone, just wondering what experiences people have had with building while keeping their current home/mortgage. I am planning a build, and can keep my current property while the build is underway, with a view to selling and paying down the mortgage when its completed. It makes sense for us not to move twice. The conveyancer I am using had a lot to say about it though, when we asked her to witness the mortgage docs, so now we are spooked. Is this a bad idea? Re: Building a house with a Mortgage 11Oct 19, 2019 2:53 pm Bean1969 Hi everyone, just wondering what experiences people have had with building while keeping their current home/mortgage. I am planning a build, and can keep my current property while the build is underway, with a view to selling and paying down the mortgage when its completed. It makes sense for us not to move twice. The conveyancer I am using had a lot to say about it though, when we asked her to witness the mortgage docs, so now we are spooked. Is this a bad idea? Hi, I assume you have a bridging loan? What state are you in? The obvious issue is if the property does not sell, or does not sell for the right price - and affordability while you build - but if you’ve considered these and you take an informed approach it has worked well for a number of my clients. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Building a house with a Mortgage 12Oct 20, 2019 8:47 pm If you are comfortable with the repayments holding both properties for that temporary period, then it can be a worthwhile exercise. What are some of your concerns you have after discussions with your conveyancer? Cheers, Tom Hi, I have a block that I am planning on building on soon to both side boundaries, which both have other houses constructed that were also built boundary to… 0 527 Vamashi I will call you first thing this morning. Basically, unless you are a billionaire you will not be able to afford The Parhammer windows or the Nilfire Windows. We… 101 362479 Building a fence now will help limit people dumping rubbish and soil on your property. Many houses in suburbia on small lots have fences up before a build. I moved into a… 1 4508 |