If I wanted to buy a block of land, and sit on it for a while, are the requirements for financing from a lender the same as for a house?
I am looking at getting in early in a subdivision, wait a while, and either build and rent out, or sell for more than I bought.
Would a similar deposit be needed? As long as I can pay the f/n payments i should be okay, right?
Any ideas?
Cheers
“Looking forward to the day when I can tell the boss where to go”
Same as far as i know.only no Ca$h coming in to assist you, and No tax deductions on Interest component of loan..
If you achieve CG and sell, ur hit with capital gains tax [angry2]
I’m led to believe, for investment purposes you may be able to claim first 12months as deduction if you then build an IP on the Land..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorMyydral,
The loan is the same.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Myydral,
Just be careful when you get finance as with a land loan there may be a clause that you need to build within 6 months or 12 months or 24 months etc. If you do not build they can up the interest rate or take further action (they prefer not to).
Yes a similar deposit is required, you may be able to get 85%-90% lend depending on where the land is, what size it is.
Check these details with a broker before going ahead.
Liz Wilson
Mortgage Lender
Depending on the lender… sometimes wording maybe “completion within 8 months of settlement”.
In essence, be mindful to check any conditions.
Liz Wilson
Mortgage Lender
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