Forum Replies Created

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of Freedom2008Freedom2008
    Participant
    @freedom2008
    Join Date: 2007
    Post Count: 6
    January 29, 2008 - 12:14 am

    Thanks Richard,

    No doubt will be in touch!

    Freedom

    Profile photo of Freedom2008Freedom2008
    Participant
    @freedom2008
    Join Date: 2007
    Post Count: 6
    January 28, 2008 - 10:23 pm

    Hi Richard,

    Thank you  so much for your advice. I have been reading the forums (I don't have much to contribute yet as this is my first foray into it all!)  and you seem to be very knowledgeable regarding all these matters so may I ask you something else?

    How much more, if any, are construction loans going to cost compared to regular housing loans?

    I have yet to determine the exact costings of my project, but I was right next to a branch of the CBA and thought I would just pop in and make a general enquiry to get an idea to base my initial costings on. At the time I didn't mention construction loans as the idea hadn't occurred to me. I  have been working on home loans SVR of 8.17% and Fixed 5 years @ 8.25% from what I can gather from the CBA and I think they are probably one of the most expensive lenders  (although I haven't looked at their comparison rate for these particular figures).

    If I base my rough costings on these amounts for both the loans would you say those percentages would cover me? Naturally I'm hoping when I firm up my figures and actually start looking for lenders that I would get better rates than the above! :-)

    Cheers,

    Freedom

    Profile photo of Freedom2008Freedom2008
    Participant
    @freedom2008
    Join Date: 2007
    Post Count: 6
    January 28, 2008 - 11:54 am

    Hello again Richard!

    Thank you for your reply.

    1) I  thought that I might use a Trust structure at some stage in the future (not necessarily this project), but I have yet to talk to a solicitor about it.  What bearing would it have on being able to get this loan? I believe that getting future loans in a trust may be easier?

    2) I will subdivide first.  The two units will be strata titled ( is this the correct term? – each could be individually owned but with common ground eg driveway)

    3) House purchase price approx  $180k and  2 units, construction costs approx $132k each. 

    4) Not sure if you and I are on same wavelength with postcodes – 7320 is Burnie, Tas and 7325 is Wynyard, Tas. I know CBA, WBC  will lend me with those PC's for buying a house but unsure for construction loan.

    I look forward to hearing from you,

    Freedom

    Profile photo of Freedom2008Freedom2008
    Participant
    @freedom2008
    Join Date: 2007
    Post Count: 6
    January 6, 2008 - 12:41 am

    Thank you Heath, I'll look him up.

    Thank you Richard, I'll post a new Finance comment titled No Doc/Lo Doc loans.
    Freedom2008

Viewing 4 posts - 1 through 4 (of 4 total)