Buying land and building?
Aug 18th 2008, 12:58 am
#1
BE Forum Addict
Thread Starter
Joined: Feb 2007
Posts: 1,905
Buying land and building?
Hello,
We have now been here over a year so hopefully will be getting our PR next year (fingers crossed).
After PR we want to start thinking about a house.
But want to buy land, not a small 800m thing but several acres and then build on it. Maybe owner builder.
How do you go on about mortgages buying land? Can you get mortgage for the land and what percentage?
Also what about mortgage for building a house?
Any input appreciated
Gems
We have now been here over a year so hopefully will be getting our PR next year (fingers crossed).
After PR we want to start thinking about a house.
But want to buy land, not a small 800m thing but several acres and then build on it. Maybe owner builder.
How do you go on about mortgages buying land? Can you get mortgage for the land and what percentage?
Also what about mortgage for building a house?
Any input appreciated
Gems
Aug 18th 2008, 6:50 am
#2
Forum Regular
Joined: Apr 2005
Location: Tapping
Posts: 104
Re: Buying land and building?
Hello,
We have now been here over a year so hopefully will be getting our PR next year (fingers crossed).
After PR we want to start thinking about a house.
But want to buy land, not a small 800m thing but several acres and then build on it. Maybe owner builder.
How do you go on about mortgages buying land? Can you get mortgage for the land and what percentage?
Also what about mortgage for building a house?
Any input appreciated
Gems
We have now been here over a year so hopefully will be getting our PR next year (fingers crossed).
After PR we want to start thinking about a house.
But want to buy land, not a small 800m thing but several acres and then build on it. Maybe owner builder.
How do you go on about mortgages buying land? Can you get mortgage for the land and what percentage?
Also what about mortgage for building a house?
Any input appreciated
Gems
Pretty straight forward for us. We did not need FIRB approval so no issues.
We are building & have a mortgage on the land - standard repayment type - but for building we need a construction loan which is interest only until completion. The bank pays the builder in % installments on major milestones (slab down etc). Most banks will help - the % deposit depends on the loan value - unknown.
We have found it costs more than expected.............. There seem to be a lot of additional costs that appear.
enjoy....
Aug 18th 2008, 6:58 am
#3
BE Forum Addict
Joined: Aug 2006
Location: WA but NOT Perth!!!!!
Posts: 3,318
Re: Buying land and building?
re costs: absolutely
and remember to budget for everything - the house build is pretty much the shell - you'll have to paint, provide floor coverings (sometimes these are included, depends who you build with) and not forgetting any landscaping for the garden.
and remember to budget for everything - the house build is pretty much the shell - you'll have to paint, provide floor coverings (sometimes these are included, depends who you build with) and not forgetting any landscaping for the garden.
Aug 18th 2008, 7:18 am
#4
BE Forum Addict
Joined: Jul 2008
Location: Westernport Mornington Peninsula
Posts: 1,761
Re: Buying land and building?
We built our own house as owner builders but there are pitfalls. We already owned the land outright so only borrowed for the build. You need to take out public liability insurance as an owner builder because if someone is hurt on the property while building then liability is with the owner. Also you have to register with the tax office and if the contractors have not got an exemption from the tax office you are required to deduct tax from the payment and pay to the tax office.
Its a bit complicated and has got even more complicated since we built but there is a magazine called "Owner Builder" and there will be sites for owner builders where you can find out all the info.
We just gave our plans to the timber people and they made the trusses for the roof and my oh did the framing but they will make the frames for you as well.
It saved us a lot of money and we now have a very well built house just the way we wanted it.
Banks may not like lending to owner builder though if you have to borrow for both house and land so best to check it out first.
Its a bit complicated and has got even more complicated since we built but there is a magazine called "Owner Builder" and there will be sites for owner builders where you can find out all the info.
We just gave our plans to the timber people and they made the trusses for the roof and my oh did the framing but they will make the frames for you as well.
It saved us a lot of money and we now have a very well built house just the way we wanted it.
Banks may not like lending to owner builder though if you have to borrow for both house and land so best to check it out first.
Aug 18th 2008, 12:03 pm
#5
Forum Regular
Joined: Jan 2008
Posts: 57
Re: Buying land and building?
We built our own house as owner builders but there are pitfalls. We already owned the land outright so only borrowed for the build. You need to take out public liability insurance as an owner builder because if someone is hurt on the property while building then liability is with the owner. Also you have to register with the tax office and if the contractors have not got an exemption from the tax office you are required to deduct tax from the payment and pay to the tax office.
Its a bit complicated and has got even more complicated since we built but there is a magazine called "Owner Builder" and there will be sites for owner builders where you can find out all the info.
We just gave our plans to the timber people and they made the trusses for the roof and my oh did the framing but they will make the frames for you as well.
It saved us a lot of money and we now have a very well built house just the way we wanted it.
Banks may not like lending to owner builder though if you have to borrow for both house and land so best to check it out first.
Its a bit complicated and has got even more complicated since we built but there is a magazine called "Owner Builder" and there will be sites for owner builders where you can find out all the info.
We just gave our plans to the timber people and they made the trusses for the roof and my oh did the framing but they will make the frames for you as well.
It saved us a lot of money and we now have a very well built house just the way we wanted it.
Banks may not like lending to owner builder though if you have to borrow for both house and land so best to check it out first.
Have you considered talking it over with a broker, we have found this very good as unless you are an expert getting a good deal is all in the mind.
