house and land packages
if i manage to get hold of one of those visas I hope to be able to buy an investment property, as my visa will be SIR 495 it will have to be a new property, does anyone know when a deposit is due, will it normally be a small holding deposit and then the full deposit nearer completion, or the full deposit as soon as paperwork is aranged, also is it likely to be 10% as is normal in UK. I know different builders may have different arangements for reserving property, just wondered if there is a "normal" practice.
We paid $2500 deposit on signing contracts.can't remember if it was $1000 for the house and $1500 for the land or visa versa but was definately$2500.You then pay the balance on the land when the paperwork is all done and it becomes yours, the house build is paid at stages of the build until the final 10% is due on completion and collecting the keys.
Thanks for that, gives me an idea of the way things work, but im curious how do you by a property like this on a morgage do you have a morgage agreed and then draw on it in stages as required, and does the morgage company have to inspect at each stage. I want to know a lot dont I;) its just that I work for a house builder in UK and Know our system well I dont like being in the dark. :)
With regards to your second post, I'm not sure about the drawing on the mortgage when required, but I can answer the next section of your question about inspection.
Usually, the mortgage company (commonly a major bank) will not need to inspect at each stage. House and land packages are becoming increasingly common and the banks, firstly, don't want to devote this much time after giving approval and, secondly, have relative trust in the building companies (usually Divine Homes or similar).
The only way I can see the lender needing to inspect at some stage is if it is one of the lenders which helps people on low incomes and with no financial backing (where the risk is higher, and the interest rate usually lower, a lot more trust involved, etc). These lenders are rare and I doubt that coming over from England you would even be eligible.
Hope this helps.
As your house build reaches each stage the builder will write to you saying that the next payment is due by a certain date, they will not start the next stage without payment so you take the letter to your lender signed by you saying that the said work has been carried out to your satisfaction and then the bank give them the payment.The payments come quick and fast once the slab is down until you only have 10% left to pay on collecting the keys.
Your right Simon your lender will approve your mortgage before the build starts but will not release any funds to you only the builder on the building contract.
New Build Mortgage payments
Originally Posted by passionate pom
We are also on the 495 visa and will have to buy a land/house new build so your post was very interesting. Do you know then if as you are paying the builder stage payments do you also start paying the mortgage lender back a percentage or start making repayments on the total of the loan, I was wondering as if we have to rent for 12 months whilst building this will add to our monthly budget. I know you can buy a new house as long as no-one has ever lived in it before to avoid the building wait if you are lucky to find the right land/house package. Any info on NEW HOUSE builds much appreciated
Yes your right you only pay interest on the amount of loan that has been paid out to the builder.
We too are going on this temporary visa, but in this months Australian & New Z"ealand magazine I read this article.
"the Australian Government policy is that foreigners temporarily resident in Australia for over 12 months from the time of application for approval are eligible under foreign investment policy to aquire residential real estate. If the property being purchased is an established dwelling, foreign investment approval is available provided that the dwelling is used as the person's principal residence, not for rental purposes and the property must be sold when their visa expires".
So it seems a new build is not our only option?
Originally Posted by carters
yes this is how i understand things, im thinking about buying a house to live in and another for investment, having a small or no morgage on one house is tempting, but this may be my one chance of buying a second property so im giving it a lot of thought.
thank you all for your help
from what i have digested re the sir 495 visa the conditions of purchase - you need to get some approval which my e state agent contact assures us is a formality and then basically you can purchase either new build or from an existing australian citizen - in other words you wouldnt be able to purchase a house from an immigrant who has not australian citizenship
i think - as always stand to be corrected - you cannot purchase another property unless that second property is indeed a new build..........................im not sure if you need pr status before that
ill be happy to purchase a shed given the current exchange rate which is gonna be down big time when the next ineviteable interest rate hikes are fetched in - least we sold the house before the gloom appears to be setting in - i would hedge my bets s.a. is going to play catch up with w.a. in the next 3 years given the flood of migrants and cash buyers - good investment if you ask me but therein lies the speculate to accumulate theory - some u win some u end up playing golf