when we eventually get to adelaide :sign03: we will be looking to have our property built. We should have enough for the purchase of land but then we would be looking at getting a constructon loan while renting does anyone have any info on this so we can try and work out costs involved etc...

thanks Lee

It works a bit like this...

You buy the land to start with - and pay stamp duty on the land only. Then, there are 3 or 4 stage payments required for the build, and most lenders will make a charge for each drawdown of maybe $250 though this varied somewhat when we looked into it.

You could try checking out some of the banks and seeing what info they have on their websites about this type of mortgage. Costs involved will be completely variable depending on your individual build - and the different builders are notorious for all having different things included in their overall price, making comparison something to be done very carefully. There is quite a lot of info in the Houses FAQ and Links about builders to see what sort of cost you will be up for, for the build. The land will usually be a separate cost unless you buy a house and land package at a set price, and foundations extra again - and quite variable depending on the land you are building on, especially if it is sloping.

As Elaine has stated it is just a standard mortgage but the builder is paid in progress payments, and the loan is an interest only loan until the final payment is made at which time it becomes a standard principal and interest loan.

And if you get the $7000 first time buyers thingy that should easily pay for all the payments untill you move in.

You can borrow 80% of the total house and land value if you sign a contract to build with a builder. As you are paying off the land, you should be able to borrow the whole amount for the build. If you build as an owner builder with no signed building contract, you can only borrow 80% of the value of the land only.

Hi There

We were looking at this and our best results were Keith Jenkins at lowdocloans.com.au. He advised going for a little more mortgage to cover the additional costs of rent and mortgage for the duration of the house build (depending on your sircumstances). You could e-mail him for info at this stage.
(His interest rates were also 0.91 lower than the others).

Hope this helps.

Diane