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Building E, L1, 661 Newcastle Street. Leederville WA 6007
The Local Loan Company
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Welcome to The Local Loan Company. We sit under the roof of The Local Financial Group. We are here to help you get into your dream home, consolidate your finances or assist with your investing. Our team of fabulous brokers will work closely with you to achieve your goals. We are with you for the life of your loan, so contact us now and become a part of The Local Loan Family.

Construction

House-Construction1

Construction can be a very daunting process whether you are building for the first time or have built before. You need to have thought through the process fully and ensured that you have budgeted for any cost over runs or delay in the building beginning.

Construction finance is also very different to a normal home loan so it is important that you speak with someone that is experienced in this area.

I am confused as to whether to build or buy an established home…what do you think?

This is always a difficult decision. There are many things to be weighed up. Do you want a brand new home that has your input in it? Do you want to live in a brand new sub division?  A new home has the opportunity for the latest technology. Do you want to live in an established suburb? Do you want an established garden? Do you want the infrastructure  in place?

You need to decide what appeals to you most – sometimes cost is the deciding factor. Don’t forget if you are building and currently renting you will need to allow for paying the rent at the same time as your mortgage increases. The key to this is smart budgeting and we can help you with that at The Local Loan Company.

Have you got any tips for me?

The most important tip I can give you is to start the preparation early, come in and see us and we can get you started on the path to owning your home.

  • Looking for a change

    Upgrading, moving out of your parents home, investing, expanding your family or getting out of renting. It is important to have clarity as to why you are embarking on this journey so that you can go forward with a clear plan in mind.

  • Fact Gathering

    You need to work out your budget and deposit requirements. Once you know these you can work out a list of the suburbs that are within your range and what homes you can afford. There are also variables that you need to take into account – site works, legal fees, government grants, house prices and inclusions and the land price. It is at this point that you should talk to The Local Loan Company – this way we can proceed to obtain for you a pre-approval prior to you signing any contracts. We normally suggest that you allow 12 months for the process to be completed – so when we sit down with you we will discuss budgets at this point. There are different issues that we will need to discuss at this point and often the requirement for a 95% lend is quite different to an 80% lend – so we need to discuss these differences.

  • Securing your land

    There are 3 important factors to look at here. Titled versus untitled, land versus house and land package and the price. Remember the cheapest block may not always be the best block for you.

  • Engaging a builder

    Most important understand what you want most from your home – is it lowest price, excellent service and reputation or quality of finish.

  • Plans and Agreement

    You need to be very thorough at this stage. Make sure that everything you want is included in the agreement.

  • Pre start

    This is where you sort out all of the finer details – power points, colours, tiles etc. Try to include some allowance for you to use at this stage.

  • Construction

    There are several stages to the construction of your home and these are where progress payments come into play. As each stage concludes the builder will ask the bank for a part payment – your repayments will increase as each payment is paid. You need to make sure that you have budgeted for this as you may be paying rent at the same time.

  • Key hand over

    This is where the last payment has been made to the builder; you have insured your home and the keys are handed over to you. It is now time for you to move into your new home.

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© 2017 The Local Loan Company Pty Ltd | ACN: 122 150 225 | Australian Credit Licence Number 493877
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