[MBullyMember@mbullyJoin Date: 2008Post Count: 3]

February 11, 2008 - 12:24 pm

Hello All,

Just a quick question, sorry to hijack a bit, I'm about to make and offer on land in the country and was going to do an offer via fax to the property consultant, the owner of the land works on a mine site else where, is this safe to do? what safe guards should I take to cover myself from the above senario from occur out of sight?

Thansk in advance

Mark

[MBullyMember@mbullyJoin Date: 2008Post Count: 3]

February 11, 2008 - 12:03 pm

Hi Richard,

Thanks everyone for comments.

We own our current house outright we have 200k invested in short term investements with Police and Nurses (funds from deceased estate).
I have spoken with a broker who recommend a 4 month line of credit for the purchase of the land at 8.93% which we use some of the investment money to offsett the payments.
Then when the construction part happens use a bridge loan to take over the line of credit at 9.28%, we would place all the investment money into the construction loan to minimise the interest, this will actual give us a better return on our money because of the savings off the interest,  then on sale of our current house pay out the whole loan within the 12 month period.

After this process we should hopefully get our investment money plus some back out and then look for a better return on that money again.

This sounds feasible and works with our mindset, BUT is this a good thing.

Hope this makes sense, we will be putting a offer on the land in the next few days.

Any last comments.

Thanks heaps Mark