How to afford rent and a mortgage?

[Guest Karen Sharples]

We have settled in the Southern Suburbs, but have been renting until now. We would like to buy a plot of land and build (not a house and land package) rather than buy an existing property. How is it possible to pay for rent as well as a mortgage, is there a way around it.

[Guest Guest12727]

Talk to the banks. I believe they release the money to you in stages as you need it through the building process and you pay interest only on the loan money you have received thus far until the build is finished.

[Keith & Linda]

Howde is correct, but you will need to discuss with builder and bank as to what stages the money will be needed/released so as all parties are aware, the stages in the build process are normally 1) foundation complete, 2) roof on, 3) completion, but can vary. The bank normally will send someone around at each stage to confirm. The land purchase part will have to be fully funded from day one, so the quicker you build the less interest/rent costs will be, but there will most likely be some initial costs which will need to be funded too, like soil testing.

A house and land package is also normally staged payed but how this ties in with land purchase side you will need to check with the package builder.

Good luck

[Guest BurgessFamily]

Don't be undone by footings.

[sandford5050]

Don't be undone by footings.

 

We have recently done this , there is usually 5 progress payments , the 5th usually completion , when you settle on the land you will start paying , it got a little tight towards the end but we managed it , try and get a fixed price for your footings too , some friends of ours fittings jumped from $28000 to $52000 .

[Guest Karen Sharples]

Thanks guys for your advice, very informative and most helpful

[Guest Karen Sharples]

Hi Sandford5050, thanks for your advice. Can I ask which builder you used and would you recommend them?

[Ktee]

Hi Karen, have a chat with Andrew Williams on here he has secured mortgages for a number of members http://www.pomsinadelaide.com/forum/pensions-mortgages-ask-vista/

[sandford5050]

Hi Sandford5050, thanks for your advice. Can I ask which builder you used and would you recommend them?

 

Hi Karen , we used Oakfords , they have display homes at hallett cove , we would recommend them they are really flexible and good quality , if you check builders ratings they come out pretty good , we had no probs with them