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Thread: Buying a Section - How do you secure a mortgage?

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  1. #1
    Join Date
    Dec 2004
    Location
    Tucson, Arizona, USA
    Posts
    298

    Default Buying a Section - How do you secure a mortgage?

    I have a few really dumb questions for all you experts out there -

    It seems that a given section (or several sections in a "development") are sold by a particular real estate company. And in most cases, it seems like you are on your own to select and contract with a builder.

    1. How do you secure a mortgage for both the section (purchased from one entity) and the house (purchased from another)?

    2. One builder I spoke to indicated that it would be cheaper if we had his company buy the section as part of building the house for us (he claimed they could get a discount on the price from the real estate company). Anyone know if that is true?

    3. In cases where there is "empty" land surrounding the development/sections, how would you find out if the land right behind/above/under (whatever) your property might be sectioned off at a later time? I'd hate to buy a section with the perfect view only to have an unexpected house appear blocking the view. Does the LIM have info like that? In many cases, it seems that the empty land might still be owned by one party and until they sold it off for a new development, you'd never know ...

    4. One development we visited had both "house and land packages" and empty sections for sale. Does a "package" imply that they have preselected the house style/design/layout? Or do you still have the ability to modify everything (which, if you do, what is the advantage to this arrangment v. buying the section yourself and contracting with a company?)?

    Sorry for the dumb questions; this is such a different way of doing things.
    ops:

    I appreciate any pointers or advice.
    RoadRunner

  2. #2
    Join Date
    Sep 2004
    Posts
    97

    Default

    Hi,

    I'd be interested in any notes on thiis too as building when we get over there would be something we'd definitely want to do.

    Cheers,

    Yogi.

  3. #3
    Join Date
    Aug 2004
    Location
    christchurch (formerly essex)
    Posts
    2,749

    Default

    I would have thought it would pay you to wait until you are here before going into anything like the above. That way you can get to speak with a lot of people in both the realestate and building industry and get the whole story on the situation. There isn't going to be a vast number of people on this forum who will have done this or had experience pertaining to it. A lot of the info about the land surrounding any section can be got by going into the local council offices and asking, or the Land Information offices. Although it may mean a bit longer in rented accommodation when you first get here I am sure that in the long run it would pay off.

  4. #4
    Join Date
    Feb 2005
    Posts
    77

    Default

    Hope I make sense.



    1. How do you secure a mortgage for both the section (purchased from one entity) and the house (purchased from another)?
    If you meet the bank Criteria and can afford Mortgage repayments they basically don't care what you spend the money on.

    2. One builder I spoke to indicated that it would be cheaper if we had his company buy the section as part of building the house for us (he claimed they could get a discount on the price from the real estate company). Anyone know if that is true?
    That's not necessarly right. The company could charge more but say they have given you a discount. If you find a section that you like you can neg yourself with the agent or the Owner if it was a Private sale.
    Prices of sections vary for an eg in the area we live they start at $250,000. A Builder has just done a spec House in a new sub division where I live and he listed it with the local agent for 795,000 and it was sold 2 weeks later. If you send me your email I can send you a few photos of these new houses


    3. In cases where there is "empty" land surrounding the development/sections, how would you find out if the land right behind/above/under (whatever) your property might be sectioned off at a later time? I'd hate to buy a section with the perfect view only to have an unexpected house appear blocking the view. Does the LIM have info like that? In many cases, it seems that the empty land might still be owned by one party and until they sold it off for a new development, you'd never know ...
    You can go to your local Council & check all drawings & zoning regulations for the area which is available to the public at a small charge.
    LIM reports do not always have this information available.
    Always look for a section or House that can't be blocked out and also check Height resistrictions too just incase your neighbours over the road decided to build another story and block your seaview (just happened to our neighbours).


    One development we visited had both "house and land packages" and empty sections for sale. Does a "package" imply that they have preselected the house style/design/layout? Or do you still have the ability to modify everything (which, if you do, what is the advantage to this arrangment v. buying the section yourself and contracting with a company?)?
    If you bought a House and Land Package they basically do everything for you ie; get all permits etc etc, you just basically pay a deposit and that's that. If you bought a section and then got a Company to build for you then you would have to get all the permits etc and as my other half said it could be a nightnmare. The plans that they have would probably be a selected House but You can choose colours, kitchen, oven etc. Most Houses do not come with fences,letter boxes,landscaping. You could ask the Builders to give you an all up cost of these or maybe some of the companies may include this in their package deals.

    Sorry for the dumb questions; this is such a different way of doing things.

    Hope this has answered some of your questions.

    Steve & Carol

  5. #5
    Join Date
    Dec 2004
    Location
    Tucson, Arizona, USA
    Posts
    298

    Default

    Steve and Carol,
    Many thanks! That's some very useful info!

    I'll send you my email for the photos.

    Thanks!
    RoadRunner

  6. #6
    Join Date
    Aug 2004
    Posts
    486

    Default

    Just to add on point three, the local District Plan is the first step in finding out what the land zoned around is for. However there is no gaurantee that it won't change in the future. You would be better asking around when you get here - developers / investors often have a better idea than the council where new residential and other development is going to happen. Also no one is legally entitled tohave 'their view' protected under NZ law - so yes there is always a risk you will lose it if someone builds too close... and they can build bloomin close here!

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