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    Default Has anybody built a house before selling their current one?

    How does the finance work? Do the banks freak out about you not having enough equity over the cost of the two loans? I'm generally pretty good but I don't understand how it's done without us ending up homeless for a period of time...because that would be bad!

    Help?

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    You get what is called a bridging loan.

    Usually you would need interest only on the loan too, as interest on the full amount tends to be a lot.

    They have a mortgage over both properties so while it does add up to a much greater loan to value ratio than banks usually like, it is for a fixed time so many banks are ok with it.

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    Apple iPhart6  (17-11-2014)

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    Thanks, hun. It's all a bit daunting to be honest but hopefully we can make it work!

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    It is scary.

    Make sure you calculate carefully to make sure you can afford it. And building ALWAYS costs more than you think it will.

    Xx

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    Quote Originally Posted by BH-KatiesMum View Post
    It is scary.

    Make sure you calculate carefully to make sure you can afford it. And building ALWAYS costs more than you think it will.

    Xx
    This!

    We have been paying 2 mortgages since May 2013! Still February before it's ready.

    Just remember too you pay in instalments so you won't be paying a mortgage on the full build, just the land and any instalments.

    Here's our house now....ImageUploadedByThe Bub Hub1416202677.931919.jpg

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    Quote Originally Posted by A-Squared View Post
    This!

    We have been paying 2 mortgages since May 2013! Still February before it's ready.

    Just remember too you pay in instalments so you won't be paying a mortgage on the full build, just the land and any instalments.

    Here's our house now....Attachment 63379
    That's terrifying! A builder I talked to today said 12-13 months but probably quicker. It's all so terrifying!

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    which builder?

    and which area are you building in? Do you have the land or is it house and land? If its H&L do they have titles already or do you have to wait?

    Is it double story? a reasonable sized lot? does the plot ratio meet the council requirements? Do the set backs? All of these things will determine how long it takes in Council to get your building plans approved. If you want a large house on a small lot, if its double story and has overlooking issues or reduced set backs from boundaries ... it can take extra time.

    When are you starting to build? Laying the slab/bricks in winter means your building will take longer as there will be rain delays. If you are up to lockup by then, the build will go quicker.

    Lots to consider

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    Default Has anybody built a house before selling their current one?

    *shuts down entirely*
    Last edited by Apple iPhart6; 17-11-2014 at 18:58.

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    Please don't quote, I'll delete later!

    Okay, freak out over lol! The builder today was Dale Alcock though I just got a good review from a family member about Aussie Living (6 months from slab down to moving in!). The block is in Helena Valley, titled and good quality soil in one of the new subdivisions. Spoke to bank today and she said 2 week turn around to get finance done after we get our pre-approval we can put an offer on the block.

    Going to wait and see what happens over the weekend after getting quotes on landscaping for our house.

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    sorry - didnt mean to freak you out


    Nice area ... that will be lovely.

    We built a house a few years ago with Scott Park Homes who were pretty good. I think it was about 10 months all up.

    We also did one as owner-builder (friend of the family is a retired builder who managed it for us) which was stressful, but much cheaper for what we wanted

    And remember to include in your budget a little to fix up your current house before selling. You will get a lot more for it if you do some basics.



 

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