We are as green as they come in terms of property investing, and after having just payed off a personal loan we took out for our wedding we are keen to save a deposit for a home loan.
We had a look at some Devine display homes, and had a chat to their consultants about the No Deposit home loan they offer. They Wouldn’t tell us the catch… is there one? We fell in love with one of the display houses but wonder is anyone has any advice.
Cheers[tired]
martinc…..there is a catch..!! you have to take finance with their lender and it is 1-2% higher pending your financial position, than what you can acheive at your local bank. They tend to give money away easier than a bank to lure you into purchasing and their house and land packages are typically more costly than other builders. They also claim you get the first home owners grant in your pocket! This may be the case but I sure know I would be using that towards reducing my debt!
Its a easy but costly way to get into your first home. Check the cost to refinance with another lender if you decide to go with devine and try and get out at a lalter it may cost you a small fortune..!!
My advise……be cautious
Cheers
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
Thanks jaas, I guess that’s we figured and didn’t want to hear, but needed to hear!
We are interested in a house/land package in the Skye area. Any hints or info about reputable and well priced developers? Do you agree that the Langwarrin/Skye/Frankston area may be a growth area?
Thanks again[wink2]
Martinc
Sorry not from Melbourne [blink] but I did read on a forum on here Frankston was up and coming.
You can still build with Devine if you have found your dream home, just need to source your own land and bank finance.
Another good source is the Sat/Sun papers, all the builders have their designs listed. You should also check home display villages, you can get some good ideas about homes, landscaping, furnishing, interior design etc.
Good luck
Jeff Aquilina
Need a holiday? http://www.coralsearesort.com email me [email protected] 20% DISCOUNT for PropertyInvesting.com members
Hi Martin,
I think the area you are looking at is great. My company is doing work for a number of large developers who are investing very large amounts of money in the area. My brother also bought an IP in Somerville last week.
With regard to finance, if you can afford the stamp duty and other expenses then there are 100% loans available that offer very good rates.
Regards
Alistair PerryThanks Alistair,
Is is pretty much the case that 100% loans are always going to be at a rate higher that a typical 90% bank loan?? Sorry, we are very new to this [oneeyed]
The loan through Devine is funded through a company called First Permanent a based Brisbane Company.
Yes the rates of interest are slightly higher than the standard Bank rate but in saying that those lenders offering a 100% loan charge a higher rate anyway.
All i would say is you have to ask yourself if they pay my stamp duty (well thats what they advertise in Brissie) and i keep the FHOG then i have to be paying for it somewhere.
The other point is with First Permanent they try and encourage you to refinance away after a couple of years but what happens if the house hasnt gone up in value to enable a traditional lender to take them out.
All i would say is the loan is available on existing homes as well albeit with post code restrictions so why not find an established house where you can get value for money and then you can always add your own touches and increase the value.
If you are happy to borrow 100-106% then either go through First Permanent (they only take applications through approved brokers) or one of the traditional lenders offering 100% loans.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Martin,
The rastes are higher but you can still get around 7%, which isn’t too bad. I haven’t brokered one for a while, so i would have to go and look up the exact rate. If you can save a 5% deposit you can access the vast majority of loans (you can also capitalise mortgage insurance with the majority so effectivelu lend 97%). If possible this is the best way to go, but 100% is ok. I’m quite happy to email you some info on these products if you like.
As Richard stated you can lend up to 106%, although the rates for these loans are quite a bit higher.
Regards
AlistairThanks Richard,
So if the property value doesn’t rise (or falls!), is it difficult to refinance with another lender?
Do you agree that Devine tend to be more expensive than other as a rule?
Thanks for your advice.[evo]
Interesting discussion.
I am and have been looking into this for few weeks now… In my opinion, most of the land and house packages are tend to be away from the city of Melbourne and you do pay a bit more than the average price.I am new to Melbourne; I was told you can buy something affordable with in 15KM radius of the city. (Not brand new)
Ideally, I would look at getting a deposit and buying something near the city as it would be most likely to appreciate (With in the next 5 – 7 years) and more likely to rent out.
Sulo
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