PROPERTY FINANCE
It is a competitive buyers ’ market at the moment , and that means there is something for everyone and there are plenty of options available to customise your dream home to your exact specifications . This also allows you to cash-in on a higher return later down the line when selling .
Naturally , there are a lot of factors to weigh up when considering these options - the most important being centred around finance . Here is a breakdown of available financing options .
BUILDING LOANS EXPLAINED
A building loan is used to finance the construction of a home on vacant land , or to finance renovations and / or extensions to an existing home . Unlike a home loan , the bank pays out the building loan in stages and only as each phase of construction is completed .
The application and approval process for building loans is similar to that of standard home loans so it ’ s strongly advised that homebuyers work alongside a credible bond originator like ooba Home Loans throughout the process . You should still shop around for the best deal on a building loan by comparing quotes from all the major banks .
“ It ’ s crucial that you partner with a reliable contractor with a sound track record and strong financial backing . You will be working with them over a long period and they will be required to fund the materials and carry out the project upfront .”
114 AUGUST 2022 SA Real Estate Investor Magazine