Hobby farm 125 acres (50.6 hectares)

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HobbyNew
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Joined: Mon Oct 07, 2013 2:17 pm

Hobby farm 125 acres (50.6 hectares)

Postby HobbyNew » Mon Oct 07, 2013 3:06 pm

I have found 125 acres just outside of Melbourne which I would like to buy as a hobby farm (looking to build). It would just be used as a hobby farm as my husband is full time employed and we just want to be more in the country but still close enough to the airport for his travels.

We currently live overseas but are Australians, returning in Jan 2014. We have a house which is currently rented until July but would put this on the market. Is there any way we can get a loan for the property?

With equity in our house but settlement not until after a sale in August or so, what are the chances of putting in an offer for the land and getting the loan before we have the 20% equity as a deposit?

Thank you

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Norman Isaac
Mortgage Specialist
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Joined: Tue Aug 28, 2012 11:34 am
Location: Sydney, Australia
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Re: Hobby farm 125 acres (50.6 hectares)

Postby Norman Isaac » Thu Oct 10, 2013 9:49 am

Hi HobbyNew,

Thank you for your post. Can you please answer the following questions so I can tailor the answer to your situation

Can you please advise if the property is currently a vacant block of land or is there a house on it?

What is the purchase price?

How much is your current property worth?

How much is owing against it?
Norman Isaac
Senior Mortgage Broker
P | 1300 889 743 E | norman@homeloanexperts.com.au
Home Loan Experts

HobbyNew
Posts: 3
Joined: Mon Oct 07, 2013 2:17 pm

Re: Hobby farm 125 acres (50.6 hectares)

Postby HobbyNew » Thu Oct 10, 2013 2:24 pm

Hi Norman,

The land does not have a house on it (we want to build). We would be looking at a purchase price on the block at around $560-570 K.

Our current house is worth about $650K and we owe about $370K.

Thank you

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Norman Isaac
Mortgage Specialist
Posts: 60
Joined: Tue Aug 28, 2012 11:34 am
Location: Sydney, Australia
Contact:

Re: Hobby farm 125 acres (50.6 hectares)

Postby Norman Isaac » Thu Oct 10, 2013 9:55 pm

Hi HobbyNew,

Thank you for the added info.

Please note that vacant blocks of land greater than 50 acres is a credit issue with lenders. Depending on the location of the property we may be able to achieve a 70% LVR loan. This means that you will need to inject a 30% deposit plus costs such as stamp duty, transfer fees etc.

However please also note that you will need to inject 30% towards the construction costs as well.

Please feel free to call me should you wish to discuss this further, alternatively my email address is norman@homeloanexperts.com.au
Norman Isaac
Senior Mortgage Broker
P | 1300 889 743 E | norman@homeloanexperts.com.au
Home Loan Experts

HobbyNew
Posts: 3
Joined: Mon Oct 07, 2013 2:17 pm

Re: Hobby farm 125 acres (50.6 hectares)

Postby HobbyNew » Tue Oct 29, 2013 6:01 pm

Norman,

If I went with the option of buying a farm with a house already on it, what difference would this make to the loan?

Eg. 4BR house on approx 160 acres.

What sort of deposit would we need and would it be possible to buy before the sale of our other house?

Thank. Just considering my options

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Norman Isaac
Mortgage Specialist
Posts: 60
Joined: Tue Aug 28, 2012 11:34 am
Location: Sydney, Australia
Contact:

Re: Hobby farm 125 acres (50.6 hectares)

Postby Norman Isaac » Thu Oct 31, 2013 5:28 pm

Hi HobbyNew,

At that land size you could potentially get away with a 20% deposit plus costs. If you can restrict to 120 acres with a house then smaller deposits can be considered.
Norman Isaac
Senior Mortgage Broker
P | 1300 889 743 E | norman@homeloanexperts.com.au
Home Loan Experts


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