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    Thread: Can we buy/build with hardly and deposit????


    1. #21

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      benj1980 is offline
      Unicorn poo! Love it! There's coastal charges and bushfire threat charges now as well to factor in. I guess that would come back with the survey.

      Quote Originally Posted by verystormy View Post
      House and land packages are a bit of a myth. There just a marketing tool by builders. All the builders do, is the sales guys poor over land blocks and look at which of their houses will fit on it and call it a package. But, the process of buying, mortgage and building are the same as you just finding a block and selecting a house.

      We built with a builder that offered a turn key package. So, everything was included such as painting, flooring and things. The advantage was that we knew it would all be done and came under the builders warranty. We were very happy with the result.

      What you do need to be VERY aware of is that the price the builders initially quote wont be the final price. You need to allow for essential upgrades. For example, the initial price will only include a basic electrical package which is 1 socket per room. Now obviously you cant run a house on that, so, when you attend the pre start meeting, you go through every aspect of the build and decide on what upgrades you need. We actually didn't need very much other than the electrical and a few small bits, but still spent about 10k on the day - which you pay for there and then.

      You also need to consider other costs. For example landscaping. This can be VERY expensive. I am convinced that turf growers in WA most be growing it in compost derived from unicorn poo and with solid gold gardening tools used as that can be the only justification of prices. Also, check things like conditions in the land title unique to the area. For example, our area required that party walls separating our garden from neighbors were made of limestone blocks - colour bond fencing is banned. That cost another 20k.

      On the mortgage front, the build side is separate from the land side and so while the house is being built, the builders will draw down the mortgage at fixed stages. So, you are not paying the full mortgage until the very end when you get the keys. I think ours was something like 10% on completion of laying slab, 10% on plate hight, 20% on the house being sealed with doors, windows and roof and the rest on completion.

      There is an excellent thread that a few of us wrote while we were building http://www.perthpoms.com/forum/renti...en-thread.html
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    2. #22

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      Druid is offline
      Remember you have to 'Qualify' for the Key Start mortgage, at the time of my enquiries I was earning under the threshold, the wife had just got her job and was on probation so her wage didnt count, once her probation was up we no longer qualified, we had to sign up before her probation was up, we didnt, we walked away, so we had to give up until we had saved the deposit, still a lot less of a deposit needed to build rather than buy established, we also had to pay rent & pay interest only on any mortgage the bank had released for the land and builder stage payments.

      Most of the big land developers, Peet Satterley etc, include a fencing & front landscaping package, colorbond fencing was erected FOC and we had a $6k voucher to spend with Landscape Australia, more than enough for what we needed including retic.

      As we were on a tight budget we had to restrain ourselves in pre-start, a few electrical upgrades, a basic smart wiring package & a few extra kitchen cupboards, still came to $20k, but then we got the first home owners $10k.

    3. #23

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      Quote Originally Posted by Druid View Post
      We talked to Aussie, the mortgage brokers, we liked the look of a house that was on the market for $500k, the meeting lasted about 5 mins, her opening statement was "we needed $55k in cash" before we could proceed, some of this was for the stamp duty, needless to say we walked away, good job really, as a year later we moved NOR, still renting but loved it and ended up building in the same suburb, so much easier on the bank balance, some of the builders even offered to pay our rent while we were building, obviously in the year or so leading up to this we saved liked mad and a month after getting our keys off the builder we sold our UK house, which made life a whole lot easier
      Hi Druid

      You can get away with 2 % deposit. You can use your first home owner grant ($10,000) as part for that deposit. So, you only really need 1% deposit, which will need to be in your account for a minimum of 3 months.

      Conditions on the above are
      Property you are looking to build is under $480,000
      You do not exceed/go over income restrictions $75,000 (Singles), $95,000 (Couples) and $115,000 (Families)

      Also with the above lender there is no Lenders Mortgage Insurance.

      Second option of low deposit is 5 % deposit.

      You will need 3 % (which will need to be in your account for a minimum of 3 months) and you can use your first home owner grant ($10,000) as part for that deposit to make up 5%.

      You will pay Lenders Mortgage Insurance but you will get better rate and more borrowing capacity, with no restrictions on income.

      The above scenarios are for building and not established. Also, it is for first home buyers in Australia. Must be PR etc.

      I can keep going, but I will just bore you.

      Shoot me a PM and I would be more than happy to answer any questions you may have.

      Cheers

      Sasha
      mwjw likes this.

     

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