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Land Loan
There are many different kinds of loans and if you decide to buy a block of land and have a house built on it, a land may be the most suitable option for you. It's usually cheaper to buy vacant land in this way, but you still need a home to live in, so how do you get the money for this? You will need to get a building loan. But why not just get the one to cover both?
Getting a land and a building separately is to the buyer's advantage because stamp duty is only paid on the land loan, not on the cost of building the house. If you were to get one to cover both costs, you would
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have to pay stamp duty on the whole amount. To get a separate land will save you quite a bit of stamp duty.
Don't forget to make sure the block of land can have a home built on it. If it is in an industrial area, this may not be possible. Then you have to be sure that the style of home you choose is suitable for the block. These are just a few things to watch when you decide on a land loan.
Check out QuickDirect and find out about home fees at http://www.quickdirect.com.au/
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