Thank you for reaching out to us and welcome to the forums.
Since you are looking to buy land and build a house to live in it is advisable to split the loan into a land loan and a construction loan.
By doing so, the loans will be advanced to you during the different stages (when buying land and when building the home) since it is considered as two separate loans.
When purchasing land, you need to meet the following requirements to ensure you’ll be able to access the equity at a later stage:
- Location: It’s important to choose a location that is either in a major city or town or at least close to one.
- Services: The land must be connected to the electricity grid and have access to town water or tank water as well as sewerage services.
- Size: The land must be no larger than 50 hectares – only a few lenders will consider land sizes larger than this.
- Access: There needs to be easy access to the land via a road. As long as it’s well maintained, dirt roads are usually ok.
With some of our lenders during the construction phase, you pay interest-only
on the drawdown amount. Moreover, with one of our lenders, you pay interest-only at P&I rates.
Give us a call on 1300 889 743
or fill in our free assessment form
to find out if you qualify for a land equity construction home loan.