Hi,
Ok, this is a blantant cry for help.
I’m about to buy a block of land, to build on within the next few months.
I’ll have difficulty managing my current rent payments on my own place of residence and the payments on the loan.
I’ve been told that there are products which can assist in managing both.
Can anyone please recommend any particular products that are good for land/construction loans?
Thank you
RLNot sure what sort of ‘product’ your friends are referring to.
If you cannot afford the repayments, then the only product that is going to help you is a loan where you can capitalise the interest. To do this, you are going to need a lowish LVR to start with = higher deposit.
If you could afford the higher deposit, then the other option is to put down a small deposit and keep some money for the repayments.
Terryw
Discover Home Loans
Parramatta
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Thanks Terry. It was actually a salesperson at the display village that told me I’d be able to minimise payments on the construction loan whilst I was still in my current place of residence.
Looks as if it’s not as easy as he made it sound though.
thanks again.
RLThe good old salesperson is not known to exaggerate!
I think they must have been talking about capitalising payments during construction. Which is possible, but you have to have the equity to do it. Sometimes it is possible, it just depends on the LVRs and your serviceability.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Redleaves,
What Some construction loan products offer is what we call ‘progressive draw downs’.
What this means is that, during the construction phase of your property, the Bank/lener will release the funds to the builder in stages. And you will only pay interest ONLY, on the amount of money released. Once all 4/5 stages of the building process is complete (fondation/footings, walls, roof, fixture and fittings, and lock-up), you then start paying interest (and principle if applicable)on the full amount of loan applied for.Please excuse me, if i am off track with my reply.
Cheers,
Thanks for that, explained like that, that’s exactly what he was talking about.
Thanks!
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