With the advent of government grant and incentive schemes, more people are looking to build their home or investment property.
Lending is similar in most respects to purchasing an established property, with a few points of difference.
As with the purchase of an established property, the maximum that you can borrow is 95% of the property’s value. This means that you will need to fund the 5% balance plus the settlement costs, either in cash savings, equity in the vacant land or equity in another property.
There is a benefit in that the state government charges are generally cheaper when building than purchasing an established property. There is also the added bonus of the government Housing Construction Grant for new properties within a certain price range. This grant is available both for first home buyers and people who have previously owned property. The First Home Owner’s Grant has also been increased for new properties. Note: this includes a property that you build yourself or one that you purchase complete, but that has never before been lived in.
Please contact us for more information about the grants currently available and whether they will apply to your situation.