Another Day in Paradise!

My smooth sailing is hitting an interesting point where our conveyancer and Mcdonald Jones has left us in an interesting position.


Our block has a put and call option on it which expires on 30th April, but we got an extension to the 14th of May. (thank GOd)

If we don't exchange before then, the price of the land will go up apparently.
My delay was getting the front page land contract over to the bank which only happened on Monday. So I have roughly 9 working days to get the bank to do Valuation, and also approve a Deposit Bond of 10%.

I nearly died on the inside today due to this, but my Broker assures me everything should be ok.
Kinda feel a little annoyed I have been placed in this position where MJH loose the Put and Call on this block in 14 Days forcing me to move heaven and earth.

Damn House and Land Packages! LOL.

My fingers are crossed this passes without delay and we can exchange on the 14th, otherwise I think I'm going to be a little deflated.

Both Contracts with the Bank

We have given now both contracts to the bank (Land and Construction). Hopefully we will get a good result on the Land within a week, I guess the bank now does it's valuation on the Land to see if all good.

Will be an interesting wait to say the least.......

Another Lesson in Buying a Home!

If anyone had told me, that before you are given full Unconditional Approval from your bank for your home loan, that you would need to part with over $16,000 in up-front deposits and fee's to start the process, I would of saved the mental torture and waited another 6 months before getting into this.

So as a First time home Buyer, if your thought process is that you only need the 5% Deposit for the Bank, and a Possible extra amount for Paying LMI upfront, you are dead set in for a surprise.

My breakdown of Cost's before being Fully approved are as Follows.

• $1000 Land Holding Deposit (You get this back after paying Builder Deposit)
• $5000 Building Deposit to start the Contract phase for Construction Quote (This comes off your Final Tender price)
• $2600 Conveyancing Fees
• $5000 Land Deposit to start Exchange (Plus 10% of Entire Value before/On Settlement)(Also comes off the Purchase Price)
• $3500 Landscape Design Bond (Paid on Land Settlement, you get this back later)

Then you will still need your 5% Deposit for the bank, and the LMI difference.

It's no wonder most first time home buyers buckle as they enter this process, because none of the above was a thought pattern of mine before heading into this, bah saving the basic 5% and LMI.

And let's not forget the unknowns for Rock Removal or Retaining walls that might come up during your build.

I am sure there are a few more cost's heading my way, 1 of which might be a security bond for the 10% upfront on the land, it's a 1.2% fee on the 10% deposit so I am only looking at around $300-$400 for this.

However it's an additional step I didn't for-see.

Let's hope over the coming week my front page land contract get's to the bank, and they approve the Land Loan to assist with the 10% Deposit needed.

All I can say at this point is wow!!! We are managing this, but it's juggling alot in a very short amount of time.