Thornbury Witch has given some very good advice. Also be aware, that if you don’t currently meet the deposit/income criteria for a mortgage from a regular bank, you will certainly not be getting a better deal elsewhere. Because of the high risk to the lender they will charge higher interest, fees etc. It will cost you a lot more. Best to save more deposit. There is nothing wrong with renting if means you can live comfortably and not be mortgaged to the eyeballs stressing over every dollar. I’ve never built new so I don’t know anything about finance + build schemes, but I would be too uncomfortable. Are there kickbacks to the builder? What’s the fine print? What recourse do you have if there’s problems with the build? I would feel much safer with a regular bank loan.
I didn’t know I could get enough from the bank on my current salary to buy or build a place by the 3nd of the year
You can reserve land in new builds and not have to pay for it (through a loan) for a couple of years, during which the price would increase, but you’d still pay the same amount.
The 2 builders he gave me the details of can do the mortgage broking as well, kind of an all in one deal.
Explained that it’s possible to pay to have your credit record scrubbed of defaults
I’ve basically had to learn to do almost everything in life by myself, from a young age. so this was good to advice to get.
Please be very careful of those all-in-one build/finance packages - they don’t have a good success record. Please check out the quality of their previous builds too. And any past bankruptcy/business failures too for the builders. Phoenixing a building company to cover up past defaults is all too common. Get some advice from your accountant BEFORE you sign anything, and be very clear about your rights if the builders go broke or otherwise default before completion. Or vanish after completion leaving serious structural repairs that need to be done to make the place liveable. Please.
Too many people get caught out by an industry that for a very long time now has depended on a kind of reverse ponzi scheme. It works fine for a bit, but any tiny change in for example materials supply can bring the whole thing crashing down. And with the world in such turmoil and supply chains in such chaos, it seems very difficult to predict what will happen over the next few years.
I can already play drums to a degree, so it’ll be nice to play drums to my own songs, which I can then use as a backing track when performing by myself
Uber driver gave me a crash course in mortgages and how to buy a place before the end of the year. Gave me some recommended builders as well.
And that’s why I talk to pretty much everyone lol
Also…
Thornbury Witch has given some very good advice. Also be aware, that if you don’t currently meet the deposit/income criteria for a mortgage from a regular bank, you will certainly not be getting a better deal elsewhere. Because of the high risk to the lender they will charge higher interest, fees etc. It will cost you a lot more. Best to save more deposit. There is nothing wrong with renting if means you can live comfortably and not be mortgaged to the eyeballs stressing over every dollar. I’ve never built new so I don’t know anything about finance + build schemes, but I would be too uncomfortable. Are there kickbacks to the builder? What’s the fine print? What recourse do you have if there’s problems with the build? I would feel much safer with a regular bank loan.
I appreciate your advice :)
I wouldn’t borrow if the bank wasn’t going to lend on my current salary.
That’s a convo with the bank this week.
Any good advice?
Well a couple of things:
I didn’t know I could get enough from the bank on my current salary to buy or build a place by the 3nd of the year
You can reserve land in new builds and not have to pay for it (through a loan) for a couple of years, during which the price would increase, but you’d still pay the same amount.
The 2 builders he gave me the details of can do the mortgage broking as well, kind of an all in one deal.
Explained that it’s possible to pay to have your credit record scrubbed of defaults
I’ve basically had to learn to do almost everything in life by myself, from a young age. so this was good to advice to get.
Please be very careful of those all-in-one build/finance packages - they don’t have a good success record. Please check out the quality of their previous builds too. And any past bankruptcy/business failures too for the builders. Phoenixing a building company to cover up past defaults is all too common. Get some advice from your accountant BEFORE you sign anything, and be very clear about your rights if the builders go broke or otherwise default before completion. Or vanish after completion leaving serious structural repairs that need to be done to make the place liveable. Please.
Too many people get caught out by an industry that for a very long time now has depended on a kind of reverse ponzi scheme. It works fine for a bit, but any tiny change in for example materials supply can bring the whole thing crashing down. And with the world in such turmoil and supply chains in such chaos, it seems very difficult to predict what will happen over the next few years.
Thank you ❤️
I’ve saved this comment.
I wouldn’t make a move without consulting a financial adviser first definitely.
Yeah I feel like they’re known for doing shit builds. That’s why I’d rather buy a pre-existing place.
Hopefully the builders aren’t those shonky ones from those building inspection videos.
That was my first thought too lol
Regardless, it’s good to know the process.
Ooohh exciting new toy!
I can already play drums to a degree, so it’ll be nice to play drums to my own songs, which I can then use as a backing track when performing by myself