Hi all you mortgage brokers out there. is there any way to obtain finance to buy a block and relocate a house onto that block? (we may not need finance for buying the block, only the house and reno costs)
Thanks for your help.collie
If the block of land is suitable security, you just get finance secured against the block of land. What you do with the funds after settlement is up to you. Hopefully, you should be able to get more than enough out of the land to buy the relocatable home and pay for the costs of moving it and setting it.
It sounds like a ‘vanilla’ deal unless there are some details you are leaving out that makes things harder.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
what on earth is a ‘vanilla’ deal?
what info do you need to know? The block we are buying will cost aprox $15,000collie
A ‘vanilla’ deal is a simple deal to put through. How much are you requiring to borrow and do you have any other security property anywhere?
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
We will probably need to borrow $70,000 to $100,000? We are just in the starting stage of this plan and are wanting to know wether we could get finance. We have no debts and only pay $70 per week rent. We bring home about $1100 per fortnight.
collie
It is a difficult one to do as the land value is only $15,000 (was that a typo?) and most standard lenders will not secure a loan against a transportable home only. Serviceability does not appear to be an issue.
You will need to go to alternate lenders which means the finance will cost you more. You might be able to get away with a construction loan if you can somehow get a fixed price contract for the home to be complete on the land.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
thanks for your help and no that wasn’t a typo!!!!
Can you help us at all? I mean in a professional sense.collie
Hi Collie,
If you have available funds to cover relocating the house and the renovation, then consider getting finance for the land only,
upon completion of the renovation you should have a fair amount of equity to continue investing,Regards
Steven
Mortgage broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Ok if we get finance to cover the land we will probably have enough to cover the relocation of house. Can we then obtain finance to complete the renovations?
TAcollie
Are you able to get a fixed price contract to relocate and install the house?
What do you expect the value of the completed project to be compared to existing properties in the area?
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
not sure wether we can get a fixed price contract, would that be the best option from a financier point of veiw?
We expect the house to of comparable value to other properties in the district, as alot of the properties in this town are “renovators delights” that people are currently charging exorhbant amounts for (eg we looked at house 2 years ago that was listed at $45,000 decided against buying as it really was a peice of junk, 18 months later the price had risen to $130,000! Same house with no work done on the property, needless to say it is still on market)
We were thinking of selling at just under what the market is selling at to get a quick sale.
EG. we were thinking of selling this property @$110,000? (Very preliminary price) Other houses are selling for $140,000+ that dont need renovating. I looked at a 2br reno delight that was listed at $105,000 and located on the highway.collie
I think the fixed price contract would be the best option because then you could get a loan on future value of the completed project.
I am a little confused though. If the land cost you $15,000 and the cost of the house, relocating and installing it might go up to $100,000, why would you sell for around the $110,000 mark when the whole thing is costing you $115,000 not to mention your time?
Would it not be cheaper (and easier finance wise) to buy an existing comparable home for $105,000???
I think you should sit down with a mortgage adviser and go through all the numbers and the complete situation so they can advise you properly. Most brokers you approach should be able to help you with this.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Hi Collie,
If you don’t have the required funds to complete the renovations then finance based on the value of the completed project may be the best option in this case, good luck.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
thanks for your replies.
I understand why you must be feeling confused Robert as my numbers are not adding up are they. The $100,000 price was a wild guess but we were hoping to buy the land and house and complete the package at a cost of $70,000 and then sell for $110,000.
Thanks Again.collie
I will ask around for you and if I find anything that might help, I will post it here for you.
Good luck and Merry Christmas.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
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