Browse Forums Home Finance 1 Jan 06, 2015 9:27 pm Sorry this is long but need some advice Basically we have paid deposit on land, and it wont settle until March this yr. Once the land settles, we will have one big loan that is our current mortgage and the land. We are then planning to sell our home and that will free up finances so we can build. We have enquired with some builders and have one in mind but are unsure whether we should start on the builder contract now, or wait until we sell our place. If we start soon then we do have to pay a small fee for drafting plans/writing up of a quote, and then a 5% deposit to lock in the contract...We can start choosing colours etc, and then just wait on our house to sell and know the building can (hopefully) commence as soon as we sell our place. I worry a lot about our home taking longer to sell though, or whether the land settlement will be delayed and dont want to pay the deposit and have things delayed many many months. The other 'safer' option is we wait until land settlement and sale of our house and then arrange the builder. The disadvantage of this is we are renting for quite a lot longer (paying both rent and a mortgage...) and the builder may also have clients in front of us that will delay the start of our build. Any advice?? Re: Help, what would you do?? 2Jan 06, 2015 9:37 pm Hi, not because my privvy to all of your circumstances of course but I would say get started on the build contract anyway as it can be quite a bit longer process than you imagine. Whereabouts are you? Some areas are selling very quickly - which helps you. Does the land look like it will be ready in March - few developments run on time. The contract process takes a while with changes and plans being drawn up, you definitely don't want to wait for that while you're renting, and worst case if your sale is delayed then try and negotiate a longer expiry date on the contract. I think you're probably on track. Here's a tip - ask what variations are done & when & if necessary allow for a provision for them in the tender and contract. Enjoy you're beautiful new home!! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Help, what would you do?? 3Jan 06, 2015 10:26 pm That's not privy too - stupid iPhone! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Help, what would you do?? 4Jan 09, 2015 12:11 am Another option that you might consider if it's worthwhile is hold onto your current property and build at the same time. This can be done via a bridging loan. Basically it allows you to live in your current property, build your new one, you can move then into your new one and then sell your old one. Means that you dont have to rent for the time after you sell yours until the new one is ready. Mind you a bridging loan is only applicable if you have enough overall equity available. Cheers Tom Re: Help, what would you do?? 5Jan 09, 2015 12:18 pm Thanks for answering! I might look into the bridging loan options, or even refinancing. hmmm Re: Help, what would you do?? 6Jan 09, 2015 12:32 pm Look, just get a valuation done. A broker can do this for you & usually at no charge - then you'll know your options. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Help, what would you do?? 7Jan 09, 2015 12:40 pm We do have a broker involved, shes looking at options for us as we speak. We had a valuation done recently too through our bank. Re: Help, what would you do?? 8Jan 09, 2015 12:42 pm Ahhh yes. Another bank - just as a comparison. And maybe even both places. Good you're onto it. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Help, what would you do?? 9Jan 09, 2015 12:43 pm Wanted to cover all bases! Would love to avoid renting if we could, but do accept it may be the way things have to be.. Bought in Nov 21 at the height of the market (classic). Good area, atrocious floor plan. BUT has land out to the left-hand side that we can extend out on (see second… 0 8772 Thanks mate. Yeah good points! Leaning towards Option 3 to get a bit extra space in the cabinets but not going too crazy high (and expensive). Would require a mini… 13 39695 Hi It came to my attention after the handover that - The facade cladding on the face and the side are not straight. -The face tapers down by 50mm from left to right and… 0 2459 |