What can you build for $100k?

[Kristine..]

Hi Kristine. There's no mortgage on the land. I was hoping it wouldn't be too hard to find finance to build a little house? The land is zoned rural but it's less than 5 min drive out of town. Do you think it would be hard to get building finance? I mean, assuming serviceability etc., is ok. Is it more difficult to find finance for building rural residential?

Hi Luce

My No# 2 Son is currently buying 5 acres vacant land zoned Lifestyle Living. It has been a bit of a haul finding construction finance for him, but we finally got the application lodged over the weekend

Outside of the street lights is enough 'out of town' for lenders to not want to know about the deal, let alone any namby pamby zonings that ain't straight 'residential'!

If you already own the land, you may be able to do an equity release from the land to put towards the construction ... in my early days I got a land loan for a solitary, crusty type of chap who unbeknown to me intended to live in a shed on the land and build the house on weekends sort of as he went along.

Of course, he ran out of money and was quite horrified when the lender seriously considered laying a 'Breach of Mortgage Conditions' order on him, requiring the loan to be repaid immediately. Luckily, common sense prevailed and they actually lent him enough money to finish off the house, but it was touch and go for a while.

As you have other properties it may be simpler to just arrange an equity release from something quite separate to your project and when the construction is finished, do a 'substitution of security' and shift the loan/s over to the new security.

Obviously, to do that, you will need to have sufficient funds from the one lender, and that lender would have to be able to take the new property as acceptable security.

I hope you enjoy your project. No# 2 Son (has moved back home to save up!) is driving us mad with constant upgrades of the proposed house ... he will now be installing solar in slab hydronic heating. Well, he is going where the sun shines for 224 days a year, may as well make the most of it!

Cheers
Kristine

 

[topcropper]

I've seen a lot of people turn a shed into a house until they can afford a proper house years or decades late. This works OK, as then the shed can be either turned back into a shed, or used as a granny flat. Sheds can get a bit hot, but being at Bathurst or Orange, this wouldn't be a problem, and a big wood heater would keep the place cosy at night.


See ya's.

 

[kathryn d]

When I was 6 yrs old, my parents bought a small hobby farm.It came complete with a 2 bedroom tiny house, and an outhouse...and plenty of delapitated farm buildings.

My father and grandfather moved there first, and built a shed so when the family moved up (3 kids +mom) we'd have somewhere to sleep and cook.

After the main house was extended and renovated inside, our shed was turned into a chicken coop.

So I always tell people I lived in a chicken coop

Fond memories.
My parents were 36 +42 before they owned their first house.

 

[coastal]

I thought just to move a house it would cost $25K

If you ad council fees and renovation..50 - 60 k it might end up being..

 

[brazen]

How is the Bathurst Council with relocated homes?

Or a demountable home. Quite a few of them second hand.

Alternatively a large livable shed.

Sunshine

I cut a house in two and transported it to nearby Blayney 10 years ago so I'd think Bathurst Council would say yes too. This type of approval is called a Section-68.

This means no Construction Certificate nor BASIX (energy-efficiency) Certificate is needed.

Brazen.