BadgerLady Posted January 3, 2014 Share Posted January 3, 2014 Hia - so I'm currently on a 457. I plan to apply for PR but am also pushing ahead with plans to build a house in regional NSW. (I have a house back in Wales but it's almost certainly in negative equity these days - I rent it out and break even so there's no harm.) I've spied a plot of land in North NSW that seems to be a good deal - plenty enough space to build two properties and rent / sell the second as an investment. It's in just the right location for me and is going cheap due to its hilly nature, which is actally just what I need for my design. I need to secure PR before I can start building, in order to qualify for the NSW first new home grant, but of course that's all time that can be spent planning, securing contractors etc anyway. In fact I've booked into a couple of building training courses so I can be hands-on or at least aware of what's happening. I've got $10,000 sitting in the bank, increasing every month, and the land's just over $100,000. So in the meantime who could give me a mortgage for the remaining balance to buy this land? Or should I really be sorting out building contracts and securing a single mortgage for the whole development? Or should I wait (estimated 9 months) for my PR, and hope to find an alternative plot then? Link to comment Share on other sites More sharing options...
Wellers and Whitehead Posted January 3, 2014 Share Posted January 3, 2014 I'm no expert but I believe on your visa, you would need more than 10% of the mortgage?! Check previous posts on here. Link to comment Share on other sites More sharing options...
BadgerLady Posted January 4, 2014 Author Share Posted January 4, 2014 It says in the Sticky that you normally need 20% but that exceptions are sometimes made, even down to 5%. The trouble is I don't know who to approach - is it a different kind of mortgage to a home loan? And which providers are likely to jump on board? (And actually I could make it up to 20% by raiding my UK account if needed.) Link to comment Share on other sites More sharing options...
Que Sera Sera Posted January 4, 2014 Share Posted January 4, 2014 There are plenty of financial planners out there. Go for an indepent one who can give you advice on your various options. Ours was great but WA so no good to you .But I'm sure there's are plenty over there. Good luck . Link to comment Share on other sites More sharing options...
Freckleface Posted January 4, 2014 Share Posted January 4, 2014 Apart from seeing a mortgage broker or similar as has already been suggested I would approach the local council around development and or subdivision provisions on the block before I got too excited about building multiple dwellings and renting or sub diving to sell the second one. Also, subdividing land can be expensive if it's even possible. Link to comment Share on other sites More sharing options...
NicF Posted January 4, 2014 Share Posted January 4, 2014 When we bought our block of land the band would only lend $75k on a $250k block of land, I can't remember the exact reason but it had to do with the fact that we were just buying land and they would only lend a small percentage of the value. We did it through a mortgage broker and we had the rest of the money so I didn't worry about or question it. The bank have since lent us all the money for the actual build and the landscaping (well, they will have done by the time we finish anyway). I think it's different if you purchase a house and land package but I would definitely talk to a mortgage broker about how much you will be able to borrow for a block of land and how much you will be able to borrow for the subsequent build. Be aware that building on a slope can be very expensive, not just for the actual build but for things like the retaining walls and storm water provisions as well. Our block is on a slight slope (looked almost flat to the naked eye) and has caused many headaches and extra costs. Link to comment Share on other sites More sharing options...
BadgerLady Posted January 4, 2014 Author Share Posted January 4, 2014 Thanks! I suspected that might be the case... I'd been planning to get mortgage for the land and then pay cash for the building work, so I guess it just needs switching around in that case. New plan: I'll take a breath, save up some more cash and wait until my PR is granted before I buy anything Link to comment Share on other sites More sharing options...
Eera Posted January 4, 2014 Share Posted January 4, 2014 The other thing I would say is to really, really research the build costs on a sloping site; they can easily be double those of a flat site, sometimes more. Make sure you budget for that! I had to do a site a couple of years back where the structural designer had allowed footings 300mm deep. I ended up having to take them down 7m and completely re-contour the site before adequate structural soils were found. Link to comment Share on other sites More sharing options...
BadgerLady Posted January 4, 2014 Author Share Posted January 4, 2014 Hmm. I'm looking to do something along these lines: http://simondale.net/frame.htm (I've got my own ideas about the exact layout though.) This style of building is getting to be pretty popular back in Wales since the Lammas project got underway... I've found some straw bale builders here in NSW (I'm doing a 3-day course in March) and some very early talk of using living roofs, but no examples yet of anyone actually building themselves something equivalent. It's been my dream for years, along with the goat and chooks :-P Link to comment Share on other sites More sharing options...
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