Well - when we bought our block in SA last year there is no way we thought we'd still be in the UK now.

As all our capital is tied into the house here, we're thinking about whether it's possible to get a mortgage with the land as security to finance the house build - borrowing more as the house nears completion using the appreciating asset as security.

It will all be repaid once we've sold the house.

Anyone know if any financial institutions would do this?

Failing that - anyone got a spare $200,000?

I see absolutely no reason why you shouldn't be able to do this, Marco, as most of the banks lend for house and land packages on the same basis, except with a further initial loan amount for the actual land, which you already have. The only drawback might be your residency status. Have you got PR?

Have a nosey around the various banks' websites looking for the deals they offer for house and land packages. That should give you a starting point. :)

Thanks PR.

Yep, I've got PR and I've emailed my contact at the bank in Adelaide and waiting to hear. Only downside I can see is that I'm still in the UK, but hoping that won't matter as they'll have the land as security.

Your location will make no difference, except possibly to slow down the signing up process. If you're still here in UK when you need to sign the mortgage documentation, you'll need a solicitor, JP, Commissioner for Oaths (or whatever the Pommie equivalent is) or a notary public. Start your search for one now and you'll be well prepared. ;)

Have a look at a few banks for comparison; Suncorp do a lot of this sort of thing - I did some contract work with them in the mortgage docs section a few years back :thumb: - oh, and St. George too.

Marco,

Shouldn't be a problem at all, I bought my block outright and needed finance to build the shack on it. Went through Aussie Home Loans and have ended up with an interest only construction loan through BankWest in Perth. Pretty low interest rate by Aussie standards of 6.65%, mortgage was for $200k and the land cost about $135k with stamp duty etc thrown in.

Think it is fairly common over here so you shouldn't have too many probs, if you want any detailed info PM and will be glad to help.

Thanks for helping my mate out. Those were some really useful answers :D

Thanks for the answers guys.

Now that we've accepted an offer and 'hopefully' won't be too long before we can get sale finalised - we've decided to wait until we get to Oz before starting on the building work. It'll also allow us to keep an eye on what the builders are doing.

It doesn't take long once they get started, mine started on 24th Jan and was told by the site supervisor construction will be done in about 4 weeks and should be moving in in about 6 weeks :o wasn't expecting it quite so quickly as they reckon on 20 weeks to build, looks like I will be moving in after 15 weeks and so far been very happy with the construction, defo helps being able to go and have a look regularly as there have been a couple of very minor things.

One bit of advice is to keep on your site supervisor's good side, got on great with mine and he's been more than helpful, taken the occasional slab of beer over for the tradies too which has gone down well, (especially from a Pom hehe). I do know of someone else who is with the same builder, by the sounds of it fell out with his site supervisor on day 1 near enough and things aren't going well.

For anyone who might be remotely interested (or terminally bored - I know most of mates are by now hehe :wink: ) - full size pics are the links after each thumbnail



http://static.flickr.com/34/123729140_ef74e836f6_o.jpg



http://static.flickr.com/36/123729142_68c809d5dc_o.jpg



http://static.flickr.com/37/123729144_35d211ed99_o.jpg



http://static.flickr.com/41/123729145_51acc63217_o.jpg

Looking good, FB, looking good. :thumb:

I think you need to reset the date on your camera though! :P :grin: