Personal loan for removable home

Discussion in 'Loans & Mortgage Brokers' started by Tony Clark, 27th Mar, 2018.

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  1. Tony Clark

    Tony Clark Well-Known Member

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    Hi all.

    We were thinking of getting a personal loan to pay for a removable home to have shipped over into a block of land we have at Macleay island. It’s impossible to get a home loan due to the house not being on the property. Was wondering if we got a personal loan big enough to cover all the costs of buying the house and council bond (which is about 50k!) could we refinance that immediately as a house loan once the house is in the block?
     
  2. strongy1986

    strongy1986 Well-Known Member

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    Would need your occupancy certificate
    Are you handy on the tools?
    Otherwise you will need quite a bit more money
    Problem also is that often you want to renovate the kitchen and bathroom so you will need the money for this beforehand unless the company who is moving it includes recconecting / reinstating everything in their cost - which at 50k is highly unlikely
     
  3. Tony Clark

    Tony Clark Well-Known Member

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    Yea sorry to clarify it’s a $50k bond the council needs which you get back. The removable houses are around 80k which includes transport and reassembly. There’s also costs for installing a sewage system and a few other things.
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I know nothing of the location, but vacant land is possible to finance. Why you have been denied will have bearing on whether you could get finance when there is a house on it.

    Also watch out if the house is not fixed to the land. If it is potentially moveable you won't be able to borrow against it.
     
  5. tobe

    tobe Well-Known Member

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    I have family who just finished an owner build on Macleay.

    Get finance on the vacant block to 80% of value and then refinance once the house has a certificate of occupancy.

    I’d approach the company that does the relocatable Homes for a referral for personal loan finance if that’s needed in the interim.
     
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  6. Christina46

    Christina46 Well-Known Member

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    We did a removable house a few years ago. We were able to finance the house purchase, transport, stumping, connections and some minor renos (painting, floor sanding, stairs, small deck) through a CBA construction loan. Given changes in the lending environment this may or may not still be an option. Our project was in Brisbane City Council and they did not require a bond.

    Make sure you do a detailed budget. The cost to purchase and shift our house was $80,000 but by the time everything was done it was $140,000.
     
  7. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    Also check your contract with the company moving the house for you. If there is no penalty for them hurrying up to get that Certificate of Occupancy to you, they will drag their heels like you would not believe. I know of a person experiencing this very issue at the moment and it is of course a problem because the owner is stuck paying high interest rates due to being unable to refinance to a regular loan.