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Discussion in 'Property Finance' started by Pepper707, 15th Sep, 2015.

  1. Pepper707

    Pepper707 New Member

    Joined:
    15th Sep, 2015
    Posts:
    3
    Location:
    Victoria
    Hi can someone advise us please, we are retirees and own our home we want to purchase a block of land but have no cash can we get a loan for land?.
    We have super and when we sell existing property will have enough to pay for land and build a smaller house, we are on 10 acres with a 40 sq house.
    I suppose what I am wanting to know is can we get a loan now that we are retired.
    Many thanks
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    13th Jun, 2015
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    5,604
    Location:
    Adelaide, SA
    You're planning to sell and move to this new place? You don't have any other debts at all?
     
  3. tobe

    tobe Well-Known Member

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    18th Jun, 2015
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    900
    Location:
    Melbourne
    If the sale of your existing place will more than cover the new, ie downsizing, you can get a loan without any income. Go to st George and ask for a relocation loan no end debt.
     
  4. Mumbai

    Mumbai Well-Known Member

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    Location:
    Sydney
    Depends what the value of your existing land and house. As others said above, of it covers the cost of your new home and more, you might end up with spare change.
     
  5. Pepper707

    Pepper707 New Member

    Joined:
    15th Sep, 2015
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    Location:
    Victoria
    No other debt we want to purchase a block of land now
     
  6. Pepper707

    Pepper707 New Member

    Joined:
    15th Sep, 2015
    Posts:
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    Location:
    Victoria
     
  7. albanga

    albanga Well-Known Member

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    19th Jun, 2015
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    Location:
    Melbourne
    Hey Tobe, what is the benefit here to St George? Once the loan is paid out they will receive no interest payments. Do they charge a one payment for something like this?
     
  8. tobe

    tobe Well-Known Member

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    18th Jun, 2015
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    Location:
    Melbourne
    not much? The app fees are a little higher, and there isn't much of a discount to the variable rate, so they don't make much money at all I'm guessing. Perhaps they try and upsell super and life products for the retirees?
     
  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    18th Jun, 2015
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    Location:
    Melbourne, Nationwide
    Tobe's essentially talking about a bridging loan. The sort of loan that might apply when you've bought a new property but haven't sold the old one yet.

    The loan is secured by both properties. The interest can be capitalised and is paid off when the first property is sold.

    The product tends to be the standard variable loan, so no pro-pack discounts or basic loan rates. This is a bit expensive so this isn't the preferred way to go about getting temporary money for a new house. If you don't have the income to support the repayments, then this is what's available.