Pipmcrae Posted March 23, 2014 Report Share Posted March 23, 2014 Hi can anyone simplify the process of buying land and building on it. How does it work, can you mortgage it and mortgage a build or buy out right and mortgage the build . Any advice would be grateful Regards Quote Link to comment Share on other sites More sharing options...
verystormy Posted March 23, 2014 Report Share Posted March 23, 2014 There are a number of ways of doing it. The simplest is to chose your builder and be finding your block at the same time. That is the way we have just done it. So we would scour the Internet and drive around looking at blocks and also visit the display villages the builders have. We found a block we liked and and a builder we were happy with and a design we liked and then passed it to a mortgage broker. Most of the builders will have one they recommend. We met with the broker to ensure we would be ok at getting the mortgage in his opinion and then put an offer on the block. The mortgage was arranged to cover the build and the land. The land chunk is paid out by the bank and you secure that. They will then provide docs direct to the builder to confirm the finance is in place - the builder won't start the process until they get that. Then it is all about the building. There are then agreed stages where the builder can draw down from the mortgage. The first is when the pad is laid - there are no foundations here, instead a concrete pad is laid and the house built on that. The builder will then draw the costs in stages with the last being on completion. It's a longer process than you think though. We bought the land and signed the initial contract with the builder in November. We are hoping the actual build will start in early may! Some of that is good though. You go through a process called pre start. This is where you chose everything you want. Colours, tiles and everything. Quote Link to comment Share on other sites More sharing options...
Guest Natalie Posted April 13, 2014 Report Share Posted April 13, 2014 Yep Verystormy is pretty spot on with the process. The best way is to engage a builder and get them to do all the work for you. They will get you finance approval and help you find land as well as build your home. I work for New Generation Homes who have a really good reputation and have been building in Perth for 35+ years. More than happy to help out and give you some options. Quote Link to comment Share on other sites More sharing options...
Druid Posted April 13, 2014 Report Share Posted April 13, 2014 Hi can anyone simplify the process of buying land and building on it. How does it work, can you mortgage it and mortgage a build or buy out right and mortgage the build . Any advice would be grateful Regards We going through the process right now, first go to your bank or broker and find out how much you can borrow, you can only borrow up to 95% of the package! then go make an offer on the block or house and land package subject to finance, take the offer to your bank and apply for the mortgage, in our case the block isn't titled until May, so the bank won't pay for it until it's titled, we then decided on a house to go on it, if you can get the building contract done while you are waiting for the bank to pay for the land the bank will do the mortgage as a package, if not they will split it, land first then once they have the building contract building, you can do just about anything as long as you have a minimum of 5% deposit, but if you have less than 20% you get stung for mortgage lenders insurance which is heaps and loaded on the mortgage! nothing stopping you paying for the land then mortgage only on the house, do it all through your bank, if you pay cash for the land then that will count as the deposit, if it's more than 20% then no MLI, best advice is go speak to your bank or broker Quote Link to comment Share on other sites More sharing options...
Nikkis2000 Posted April 24, 2014 Report Share Posted April 24, 2014 Just reviving this as I have a query. Has anyone built on stumps rather than concrete base? I love the queenslander style and stumps are cheaper but I can think of a couple of downfalls ( maybe literally!) Would love to hear if anyone has experience. Quote Link to comment Share on other sites More sharing options...
Druid Posted April 24, 2014 Report Share Posted April 24, 2014 Just reviving this as I have a query. Has anyone built on stumps rather than concrete base? I love the queenslander style and stumps are cheaper but I can think of a couple of downfalls ( maybe literally!) Would love to hear if anyone has experience. WA building regulations are a nightmare, nothing stopping you if you can get it through planning, but the land has to be zoned correctly to allow you, most of the newer modern estates have covenants which stipulate what style of building you are allowed and a queenslander is never on the list, you will have to go out in the countryside a buy some acreage Quote Link to comment Share on other sites More sharing options...
Nikkis2000 Posted April 24, 2014 Report Share Posted April 24, 2014 That's exactly what we're doing (hopefully) so fingers crossed! Quote Link to comment Share on other sites More sharing options...
Rossmoyne Posted April 24, 2014 Report Share Posted April 24, 2014 Just reviving this as I have a query. Has anyone built on stumps rather than concrete base? I love the queenslander style and stumps are cheaper but I can think of a couple of downfalls ( maybe literally!) Would love to hear if anyone has experience. Have a look at the Rural Building Company as I think they have some designs like that. Quote Link to comment Share on other sites More sharing options...
Druid Posted April 24, 2014 Report Share Posted April 24, 2014 That's exactly what we're doing (hopefully) so fingers crossed! Then you have all the bush fire regulations to deal with, so it won't be a timber queenslander, I saw some interesting modern renditions of a queenslander in Karratha, there they have the cyclone regulations to deal with as well Quote Link to comment Share on other sites More sharing options...
Nikkis2000 Posted April 24, 2014 Report Share Posted April 24, 2014 Makes you wonder why there are so many timber houses out there and companies (like Rural Building as suggested by Rossy) that are selling them! Quote Link to comment Share on other sites More sharing options...
Druid Posted April 24, 2014 Report Share Posted April 24, 2014 Makes you wonder why there are so many timber houses out there and companies (like Rural Building as suggested by Rossy) that are selling them! Look closer, most of the 'Framed' houses are steel framed with cement board cladding on concrete or steel poles, the most timber you are going to find is in the deck verandah or maybe the roof trusses, I looked at building a steel framed house in Perth metro, but unfortunately the covenants stopped me. Quote Link to comment Share on other sites More sharing options...
Nikkis2000 Posted April 24, 2014 Report Share Posted April 24, 2014 Ok that's great - takes the issue of any rot away. Actual building material can be resolved. But I would still be interested if anyone has any other experience of issues related to building on stumps compared to concrete. Subsidence etc? Quote Link to comment Share on other sites More sharing options...
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