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Thats what i did for my home loan but with BankSA(ST George). I was approved for $120k. I only used $115k for the construction of my house. I had to write a letter in requesting them to transfer the $5k to my savings account. I now have that $5k in my offset account.
All this was done while my house was a PPOR. I am renting it out now.The initial rate is 4.85% for 3 years then reverting back to the full amount. You stated you can pay it off in 3.5 years so you get the discounted rate for the most of your loan term. One thing you should look out for is to see if there is any early termination fees. Most banks charge a fee if you pay off your home loan inside 3- 4 years.
Termination Period: 7 Years State: NSW
I am not sure what that means but could mean your minimum loan term is 7 years.The only other question is how do you pay off $650k plus interest in 3.5 years???
I wish i could pay off my home loan in 3.5 years.I can understand the first six month is not claimable as she has never lived it to become her PPOR.
From December she will move in and will become her main PPOR for six months until June 2010. Shen then rents out as an IP.
As she has lived in it and became her main PPOR she should be able to claim the 6 year CGT exemption from June 2010 as it is an absence from her main residence.Sorry i dont think it is owner builder. I am just buying land and getting someone else to build.
I know this area very well as i live within a few kms of it over the last 20 years and have been looking on the internet and been to house inspections to see value of similar houses in the area. A 3BR single garage home will cost between $340k-$360k. A 4BR double garage house will cost over 400k. I am buidling a 4br double garage home. I am buying land at 180K plus 7k government charges. To build the house is 150k. Land is settled in november and house will be finished next november so i calculated interest during this period to be $17k.
I add another 20k to the budget for floorings and other expenses. Thats 374k. I get grant of 11k so $363k.
If i like the house i probably keep living in it. Have to live in it for 6 months to get the grant and make up my mind then. If i dont like it will sell for 400k. Thats a 26k profit and i dont have to pay CGT. Well 13k profit as i will be paying $480 for the 6 months i am living there.I am also looking into family equity loans as well. Instead of using the 70k cash as deposit am thinking of using my parents PPOR as secutity. Then use the 70k in an offset account. The benefit with this is that i dont tie up the 70k and use it for something else though i have nothing on the horizon. I also will be able to get the grant during the construction.
The problem is i konw there will be more paper work. Also what are the interest rates like compared to normal loans. I also know there will be other fees because i believe two loans needs to be established and two properties will need to be valued. I also believe taking out my parents PPOR as security when i have enough equity will also cost me.If you say it is possible what bank are you thinking of?
With the cba loans i also get free establishment fees. Infact the only thing i have to pay is the settlement fee at $100 and progress payment fees of $50×5 during construction. Interest is around 8.65%.
If you can arrange a loan similar to this through a owner builder loan i am interested in finging out more.The main reason i am intterested is because currently the house is being built as a IP and i wont be able to get the grant of $11k until i actually move in. Should be sometimes around november next year. But if i get the loan as a PPOR i can get the grant during construction. That's having 11k sitting in an offset account during construction so i pay less interests.
Yes i need another $260K. But at $260k repayments are around $470 a week just over half my income($850). No bank in Australia will lend me that. I actually asked a few MBs. One said 180k flat no more. The other said $220k max.
The only way around was to apply for an investment loan and declare it as an IP so i could borrow more from the rent income.I have no other debt of any kind. This will be my first house and planning to live in it for at least 6 months to get the goverment grant. I will be buying land (180k) and building a house on it(150k). Land is to be settled in november.
I currently live with my parents and after this house is built the whole family would be moving into it. My parents home will be rented out. They currently own their PPOR outright.
The problem is i do not make enough income to afford a $330k loan. MB would let me borrow between 180-200k on my income. He said it is possible to borrow up to 350k if i borrowed as an investment loan and the property would be an IP.
While the house is being built i would just pay the interest. After the house is built we move in and my parents PPOR will be rented out to help pay off the loan.
The other option was to build the house with my parents but i would not have been eligible for the grant as they already own houses.
Just looking for opinons for the best way to finance it.I was wondering if anyone here could recommend a good broker to buy my first home. I live in Adelaide. I have seen one from Bernie Lewis and they have offred me a pro package from colonial/cba with .7% off with no establishment fee and and a few other extras.
I think the deal is pretty good but thought the broker was a bit pushy and wanted to make a sale.
I also want comments about refund home loans where they give you part of their commissions. Refend home loans is offering $500 for a $350,000 home loan.
