I am currently looking at a land which cost $150,000. I am planning to buy it and then build a house on it (Building cost quoted by the Builder is $180,000). All up it will cost me about $320,000.
When the house is finished, the estimated value by my real estate agent is $420,000.
How can I go about doing this loan?
I would like to do this with the FHOG of $12,000 in Victoria.
I think I can borrow about $220,000 at the moment, but I can use equity(of about $20,000) either from my other investment property, and borrow the remainder from my parents.I would like to know
1)HOw much LVR can I get for the purchase of the land?
2)Is getting a LOC a good solution to owning my First Home?
3) Will the lender lend me the finance based on the final value of the house? (All similar houses in the area are selling for $400,000+)
Can anyone help?
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Not really enough info for any definate advice.
I wouldn’t normally advise an LOC unless you really need it – I don’t see that you do in this case so far.
If you are organising a builder straight off then a loan on completed valuation will be the way to go. Will keep the LVR down and the LMI down too.
Sounds like a good first project – esp with the FHOG etc.
All the best,
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.
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