LadyCroft Posted August 21, 2015 Share Posted August 21, 2015 Our mortgage broker was advising us to take advantage of the First Home Owner Grant and look at a recently completed new build or buy a house & land package. Question is, how do you go about getting a house & land package? Do you just go around the sales offices where they are building and look at the display houses n get info that way? Or do you go directly to the builders websites and look for "house & Land"? We know where we would like but don't have a clue how to actually go about buying a house & land package. Also, how does your mortgage offer cover paying for house & land package? We have no extra money so need to avoid any other costs like we have heard people talking about paying extra as the land took longer to title. Do we make sure we get a Turn Key package??? I am soooo lost. We have been saving a deposit since we arrived here over a year ago. The house prices where we have been looking have risen more than our ability to save already and we have been priced out of the market in the areas we were looking. Sorry but I don't want to buy a house in Frankston (can't afford Frankston South now either for what we need and can't afford a "doer upper"). Link to comment Share on other sites More sharing options...
NicF Posted August 21, 2015 Share Posted August 21, 2015 It all depends on where you want to live. If you like the idea of living in one of the brand new estates then yes you can go along to the display homes of all the builders and see what they have to offer in the way of house and land packages. Or if you want to live in a more established area you can look on realestate.com.au and see if there are any house and land packages in the area. Be aware though that sometimes an advertised house and land package is nothing of the sort and you have to buy the land and then engage the builder. We actually found the block of land first, bought that then went and looked for a builder that suited our needs. Given your budgetary constraints I think I would avoid building a new house as there are often costs over and above what the builder quotes, even with a turn key package. For example for us we had to pay an extra $1,500 once the foundations were being dug as the contractors found the land was even more unstable than originally thought. A good builder will give you an idea of what additional costs you may have to pay that are not in the original price or even the contract. If you can find a house that a developer has already built this will be a much easier way of purchasing a new house. And in my experience not much more expensive either. In terms of how the mortgage works we went through a broker and they sorted it all out for us but we borrowed a certain amount for the land and then a further amount for the house. We had to pay for the house in stages as it was built and the mortgage company released the money to the builder at each stage when they received the signed paper work from us. We only paid interest on the mortgage when the house was being built and then switched to capital repayment once we took ownership of the house. Link to comment Share on other sites More sharing options...
LadyCroft Posted August 21, 2015 Author Share Posted August 21, 2015 Wow, thanks for such a detailed reply. Yes, I am not sure about the issues that might arise from a new build off plan and time delays etc or whatever else might happen that we have no idea about. I have heard from a neighbour who is building in a nearby new estate that the land title (sorry - not sure of the correct terminology but you prob know what I mean) was delayed at first because they discovered endangered frogs then bandicoots then something else followed by issues with Vic roads re getting an intersection to enter the estate which has caused them problems with financing. Puts me off a bit... Thanks for the info! Link to comment Share on other sites More sharing options...
PomCop Posted August 21, 2015 Share Posted August 21, 2015 Purely out of interest here. I don't own a property in the UK so I am entirely new to this! Basically, when I make the move over to Aus I have kinda got my eye on a friends house that they will be looking to sell at the time I move over. What is the general process of getting a mortgage in Perth? I will be earning around $68k a year. Ta. Link to comment Share on other sites More sharing options...
VERYSTORMY Posted August 21, 2015 Share Posted August 21, 2015 Our mortgage broker was advising us to take advantage of the First Home Owner Grant and look at a recently completed new build or buy a house & land package. Question is, how do you go about getting a house & land package? Do you just go around the sales offices where they are building and look at the display houses n get info that way? Or do you go directly to the builders websites and look for "house & Land"? We know where we would like but don't have a clue how to actually go about buying a house & land package. Also, how does your mortgage offer cover paying for house & land package? We have no extra money so need to avoid any other costs like we have heard people talking about paying extra as the land took longer to title. Do we make sure we get a Turn Key package??? I am soooo lost. We have been saving a deposit since we arrived here over a year ago. The house prices where we have been looking have risen more than our ability to save already and we have been priced out of the market in the areas we were looking. Sorry but I don't want to buy a house in Frankston (can't afford Frankston South now either for what we need and can't afford a "doer upper"). The "house and land package" is just a marketing gimmick. The sales guys just look for empty blocks online the same as you can and check what house designs they have that will fit and call it a package. My advice is to just look at blocks yourself. It makes zero difference to the bank or the process. As pointed out, be aware of the extra costs that are not apparent. For example, the standard practise (at least in WA) is that your contract price only includes one single power point per room. So, yu will spend an extra couple of thousand on that. There will be a lot of other necessary upgrades that you pay on top even with a thorough turn key package. Be aware of anything in the area covenants that may cost money. For example, there is a covenant in our area that requires the patrician walls between neighbours to be limestone brick or block. So, the two patrician walls have cost $14k, which I am responsible for half. Link to comment Share on other sites More sharing options...
VERYSTORMY Posted August 21, 2015 Share Posted August 21, 2015 Purely out of interest here. I don't own a property in the UK so I am entirely new to this! Basically, when I make the move over to Aus I have kinda got my eye on a friends house that they will be looking to sell at the time I move over. What is the general process of getting a mortgage in Perth? I will be earning around $68k a year. Ta. It will depend on the deposit you have. The banks will want to see at least a 10% deposit and if it is less than 20% you will be charged lenders insurance which is expensive! They will also want to see at least three months payslips from a permanent job. The lending here is a bit more flexible and they will lend a higher ratio to salary than the UK. But that does not make it a sensible thing! You should not borrow more than about 3x salary or a repayment of more than one third of income. You need to factor in potential interest rate rises as well. Link to comment Share on other sites More sharing options...
Man from Snowy Mountain Posted August 27, 2015 Share Posted August 27, 2015 in that case, where can i find land to consider buying, say around Sydney and Melbourne? what is the bank mortgage like? Link to comment Share on other sites More sharing options...
NicF Posted August 27, 2015 Share Posted August 27, 2015 in that case, where can i find land to consider buying, say around Sydney and Melbourne? what is the bank mortgage like? Have a look on realestate.com.au and search for land only. Not sure what you mean by your second question though. Link to comment Share on other sites More sharing options...
Man from Snowy Mountain Posted August 27, 2015 Share Posted August 27, 2015 thx mate!!! my second question is about bank financing, sorry use the wrong word mortgage. can i raise bank financing when buying land? what is the interest rate? Link to comment Share on other sites More sharing options...
NicF Posted August 27, 2015 Share Posted August 27, 2015 thx mate!!! my second question is about bank financing, sorry use the wrong word mortgage. can i raise bank financing when buying land? what is the interest rate? Yes you can get a mortgage for land but the bank will probably want a good sized deposit. Our deposit was about two thirds of the cost of the land. Interest rates vary depending on the bank and what deal you can get. Have a look at canstar.com.au for indications of mortgage interest rates available from different places. Link to comment Share on other sites More sharing options...
wattsy1982 Posted August 27, 2015 Share Posted August 27, 2015 Yes you can get a mortgage for land but the bank will probably want a good sized deposit. Our deposit was about two thirds of the cost of the land. Interest rates vary depending on the bank and what deal you can get. Have a look at canstar.com.au for indications of mortgage interest rates available from different places. Weve just bought a plot of land in QLD for $300k and we only put down a 5% deposit Link to comment Share on other sites More sharing options...
Man from Snowy Mountain Posted August 27, 2015 Share Posted August 27, 2015 wow 5% i think you got a real bargain, mate!!! Link to comment Share on other sites More sharing options...
Man from Snowy Mountain Posted August 27, 2015 Share Posted August 27, 2015 thx mate!!! i will have a look at your canstar site. Link to comment Share on other sites More sharing options...
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