Leave a comment

3 Comments

  1. Hi Liam, with respect to the purchase of a house and land package – can you please provide more insight into how settlement of the land AND house is to occur at the same time given that the land in reality needs to settle prior to the house (to allow title to pass from the developer to the new owner to then allow building of the house to occur). Further, is it enough to have one LRBA contract with the bank (while still having to sign a sale of land contract with the developer AND building contract with the builder) in order to be seen to acquire one single asset?

    Like

    Reply
    • Jeanne, I am sorry but you cannot have a seperate contract for land and then one for building. The most common form I see is where the delveloper is also the building contractor and the deal is done as one consolidated contract. In other cases building firms buy or take options on the land and then offer a single contact to the buyer. Often the deposit is higher than 10% to ensure the builder is not committing to much of their capital. The LRBA is simply a loan agreement but the requirements of that loan will be that you are acquiring a single asset.

      Here is an example of one firm offering this type of contract http://smsfhouseandland.com.au (THIS IS NOT A RECOMMENDATION).

      Liam

      Like

      Reply
  2. Howdy I am so delighted I found your blog page,
    I really found you by mistake, while I was browsing on Digg for something else,
    Anyways I am here now and would just like to say thanks a lot for
    a fantastic post and a all round thrilling blog (I also love the theme/design), I don’t
    have time to read through it all at the moment but I have bookmarked it and
    also included your RSS feeds, so when I have time I
    will be back to read a great deal more, Please do keep up the excellent job.

    Like

    Reply

Let us know what you think? Have you got a question based on the article? Let me know

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: