All Topics / Finance / Loans for Blocks of Land

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  • Profile photo of RichLeeRichLee
    Member
    @richlee
    Join Date: 2005
    Post Count: 25
    June 19, 2005 - 1:22 am

    Good Morning…..
    Is it true that you can purchase a block of land as an investment loan if you arent ready to build on it yet?? Hope this makes sense.
    For example we have a block of land and used a Variable Home Loan to finance it and pay P&I, is this the best option for us? Is there a better option for us if we want to pay it off quicker?
    Thanks heaps..
    Cheers

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    June 19, 2005 - 1:57 am

    If your goal is to pay it off quicker then that loan is fine.

    You might be better to consider a longer term goal such as owning several properties and work towards that. In that case I would suggest paying IO and saving for your next deposit?

    Some food for thought.

    Cheers,

    Simon Macks
    Finance Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493
    June 19, 2005 - 8:42 am

    Also, I would seriously considering changing the loan to interest only and attaching an offset account so you maximise your deductions when you build on it and it becomes and investment property.

    You can pay as much as you like using this structure as well.

    TMA

    http://www.email4money.info
    Essential Links
    First Home Buyer Website

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