Buying land with no intention to build - what does bank think?

Viewing 9 posts - 1 through 9 (of 9 total)

goldies
Member
@goldies
Join Date: 2010
Post Count: 115
December 4, 2011 - 12:59 pm
Hi all,
Just wondering, would a bank have an issue lending on land if i have no intention to build?
Would i just be subject to normal servicability tests etc?
Thanks.
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
December 5, 2011 - 2:05 am
Majority of banks will have an issue- in fact they may not lend to you even with a good income.
Having said that; there are a few lenders that “specialise” in this market and does offer vacant land purchase; but either at a lower LVR ( 60-70%) or slightly higher rate.
Rate will depends on lender, LVR , Size of the loan, Size of the land, Zoning and location of the place.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone Me
Same Banks. Better Rates. Served With a Passion.
goldies
Member
@goldies
Join Date: 2010
Post Count: 115
December 5, 2011 - 7:36 am
Hi Michael
thanks for the input.
The land is about $30000. Very cheap. its in a future growth precinct with plans for a town centre, residential and commercial premises within 15 years. Its on the relevant state's Planning website…
Guess i may need to do more research before i ask the banks.
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
December 5, 2011 - 7:42 am
How much do you need/want to borrow? Ie how much deposit do you have yourself?
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone Me
Same Banks. Better Rates. Served With a Passion.
goldies
Member
@goldies
Join Date: 2010
Post Count: 115
December 5, 2011 - 7:47 am
I have $6000 for deposit – so would be borrowing 80%
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
December 5, 2011 - 7:50 am
80% LVR is a bit high given it’s vacant land only- unless it’s located in a good region ( which i doubt from your description of the town lol )
If you dont mind me asking- whats the postcode ( PM/email me if you prefer).
Do you have another property? or would this be your first?
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone Me
Same Banks. Better Rates. Served With a Passion.
goldies
Member
@goldies
Join Date: 2010
Post Count: 115
December 5, 2011 - 7:52 am
Not sure how to PM from this site? or find your email address…
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
December 5, 2011 - 7:55 am
[email protected]
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone Me
Same Banks. Better Rates. Served With a Passion.
goldies
Member
@goldies
Join Date: 2010
Post Count: 115
December 5, 2011 - 7:56 am
blonde moment… sorry!