Guest markmet

info on building your own property

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    Guest markmet

    Hi there

    Wandered if anyone could give us an insight into building your own prop such as: rough idea on land price, price to build the actual prop, how it works with the bank as regards to mortgage, how long it takes from buying land to finishing the new build. This is something we would really like to do, but need to know if it is affordable to us. We would want to build a 4 bedroom property single storey.

    Any info would be appreciated. Thanks

    Chris

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    Guest kangomik

    Location Location Location

     

    depends where you buy, around $125K for something small and a distance from the city, to $265 for something near the city.........Thats the land only:confused:

     

    House well you could proabably build for around $125K, but if you want your own style or start tweaking things then the cost rises.

     

    Allow +30% on top for finishing the lanscaping and paving off.

     

    Saying that you can buy land and house packages at under $300K, but you get very little land.

     

    most seem to be 12 months build from land purchase, some will be faster some slower.

     

    The bank charges you in stages... land, build, completion.

     

    Because there are so many variables it's very hard to answer accurately.

     

    Some people buy houses near the beach for 1 mil, flatten them and start again:goofy:

    Some go far north, or south, and into the hills and get a lot more for less.

     

    I don't think the above will help to much untill you arrive and have a look around.

     

    2 storey maybe the go in the future!;)

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    Guest markmet

    Thanks guys

    We are in flagstaff at the moment. Wouldnt mind building here or aberfoyle, so do you think prices of plots would be cheaper in these areas if they aint so close too the city?

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    Hi Chris

     

    In terms of mortgages there is no real difference in obtaining a mortgage for a land and build package as opposed to an already built house.

     

    You will require a suitable amount of deposit and also must be able to demonstrate the ability to service the full loan on completion.

     

    You firstly settle on the land and the Bank/lender will release the funds for you to do this so you will be making mortgage payments from that point (assuming of course you do not buy it outright) and then the Bank/lender will release the funds to the builder over several stages as set out in the building contract. As the Bank/lender releases each stage payment your mortgage/loan increases thus increasing the amount you need to pay.

     

    During the whole construction process the mortgage is set up on an interest only basis which obviously helps if you are also paying rent along the way, it then reverts to repayment (Principal and Interest) on completetion of the house.

     

    Hope this helps, feel able to contact me if you require further info.

     

    Regards

     

    Andy

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    Guest lindagarrattley

    Hi

    On a land/build option for approx. $300K, what wld be a an av. deposit? Many thanks

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    Hi

    On a land/build option for approx. $300K, what wld be a an av. deposit? Many thanks

     

     

    Hi Linda

     

    Deposits required nowadays are generally 10%, however some lenders do only ask for 5%. It is probably better if you can put a 20% deposit down otherwise anything less than this there is a fee known as Lenders Mortgage Insurance (LMI) which can be $1000's, this is a one off fee paid to the Bank to protect them and not the borrower.

     

    In addition to the deposit is stamp duty, government charges etc, when you are buying land to build then these charges are based just on the land value as opposed to the land and house value. These costs are approximately 5% of the land value.

     

    You may be eligible for the First Home Owners Grant (FHOG) which is currently $7,000 and a bonus grant of $4,000 if the value of the land and build contract price is under $400,000, the bonus grant is still payable on values up to $450,000 but reduces gradually the more over $400,000 you go.

     

    Regards

     

     

    Andy

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