Building a new house on LOC

Hi,
I have a question about building a new IP house with a LOC.

We built a new IP house two years ago and just used a normal home loan,where the banks paid the installments as they become due.

Last year we built with a smaller private builder and just using out LOC,I was able to pay the payments as they come up myself.

We are just settling on some new land TODAY:p and have chosen Dixon homes Rocklea for this house.

What they are insisting is that we set up a joint account for the payments as they arise.Any interest accruing will be mine.(Because they are a public company)

Would I be better off doing this or just put it back in the banks hand as I did two years ago.I haven't spoken to my banker about this yet,just want some fresh advise?
 
Hiya

You are borrowing the funds in eother case.

This model gives you some greater control but also responseability.

In general, for future risk mitigation purposes of not being able to gain funding ( for whatever reasons) I would usually recommend getting a loan for the land and build if the deal isnt onerous. This will always save some money for a rainy day,

ta
rolf
 
Hi,
I have a question about building a new IP house with a LOC.

We built a new IP house two years ago and just used a normal home loan,where the banks paid the installments as they become due.

Last year we built with a smaller private builder and just using out LOC,I was able to pay the payments as they come up myself.

We are just settling on some new land TODAY:p and have chosen Dixon homes Rocklea for this house.

What they are insisting is that we set up a joint account for the payments as they arise.Any interest accruing will be mine.(Because they are a public company)

Would I be better off doing this or just put it back in the banks hand as I did two years ago.I haven't spoken to my banker about this yet,just want some fresh advise?

If you take the money out of a LOC to put in this account you will be paying interest on the whole amount from day 1. The interest you get in the account will be minimal. How much money are you talking?
Sounds like a waste to me. Better to draw down as you go.
Also if it's in a joint account they have access to your money whenever they like. What if they go broke and withdraw all the money?
 
Why would you pick Dixon? Reason I ask is we've had a few clients use them (mainly because they were a bit cheaper) and they seem to blow out on time as well as have issues with QA on the end product.
 
What they are insisting is that we set up a joint account for the payments as they arise.Any interest accruing will be mine.(Because they are a public company)

I hope this account would be set up that all parties have to sign before money can be withdrawn.
Marg
 
Why would you pick Dixon? Reason I ask is we've had a few clients use them (mainly because they were a bit cheaper) and they seem to blow out on time as well as have issues with QA on the end product.

I chose Dixon homes because they are doing a steel frame house,
solar hot water,1.5 KW solar power on roof,237m2 house 2700 ceilings,4bed 2 bath double garage,28m2 alfresco finished for under $200,000,
Throw another $20,000 to finish,
Possible $400 -$420 week rent.
They use to blow out on time,however with the downturn they are actually doing them quicker than other builders now.
Also another benefit is a debt free company,I am seeing to many builders bust half way through lately.
Will let you know how I go,;)
 
I chose Dixon homes because they are doing a steel frame house,
solar hot water,1.5 KW solar power on roof,237m2 house 2700 ceilings,4bed 2 bath double garage,28m2 alfresco finished for under $200,000,
Throw another $20,000 to finish,
Possible $400 -$420 week rent.
They use to blow out on time,however with the downturn they are actually doing them quicker than other builders now.
Also another benefit is a debt free company,I am seeing to many builders bust half way through lately.
Will let you know how I go,;)

nothing wrong with dixon homes have built several using them just whish I could pay brisbane prices bloody frieght charges lol is that price fully finished flooring screens blinds fans etc
 
nothing wrong with dixon homes have built several using them just whish I could pay brisbane prices bloody frieght charges lol is that price fully finished flooring screens blinds fans etc

No that is just lockup,however that includes site costs of approx 25,000 ,septic system etc.Resort range,with the painting taken out.
If it was built in sewered area,it would be a lot cheaper.
I was going to buy sewered area this year ,however a bargain came up.

I am not building in the Brisbane area,This is in the Lockyer Valley area.
Half way between Brisbane and Toowoomba in the Fairways estate at Hattonvale.
Best to stay away from turnkey with Dixon as they just cant cut it in that area.
What area are you in and where have you built before?
 
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