Consider this...
Planning your cashflow during the construction phase is important.
Look at your peak cashflow as you might have to put in more money during the construction than you’ll need by the end, especially if the First Home Owners Grant (FHOG) is involved.
There are a number of ways you can buy the land and arrange the construction. How your loans fits with this can effect your total cost and cashflow requirements.
Not all loans will fund construction
Loans are usually based on the lesser of the land value plus fixed price building contract or an independent valuer’s assessment of the “as if complete” value of the house.
When buying a house package from a builder offering special incentives to purchase make sure the valuation is not lower than cost of the construction.
If you’re designing your own home make sure you don’t over capitalise because you’ll need to put in more money than you expected.
Incorporating all your costs into the building contract is easier to finance than trying to find the money later.
You generally put in your money in first and the lenders money last
Make sure you have the funds to pay for loan payments during the construction.
Owner building is far more complex, with less lenders and greater cashflow requirements so make sure all the bases are covered
Multiple houses, relocations, units in the backyard and other more complex projects all require a good understanding of the lenders credit rules and good planning.
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Onyx helps you to...
Do the numbers. Assess the total picture including both total lending and cashflow position.
Find the loan that best suits your situation.
Arrange a loan application, approval and settlement.
Onyx will then...
Support you through the progress payment stage and in some cases manage the whole process.
Regularly review your finance
Help you plan for the future whether that’s the next home or an investment property.
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