Buying land and building — a few concerns about timing and finance
Hi everyone,
I'm a first home buyer planning to purchase land in an estate and build. I've spoken to the estate agent, and they've mentioned the land won't be titled until around October. They're asking for a $10K deposit and want me to sign an unconditional contract.
I have a few concerns and would appreciate any advice:
Valuation risk — What happens if the CBA valuation comes in lower than the purchase price? Since it's an unconditional contract, I'm worried I'd have no way out.
HA approval expiry — My current pre-approval expires at the end of July, but the land won't be titled until October. Can I get my pre-approval extended for a few months, or would I need to reapply for help to buy scheme again.
Build timeline — On top of the land settlement, the build is expected to take around 5 months. Does the pre-approval need to cover the entire period through to construction completion, or does that work differently with a construction loan.
Has anyone been in a similar situation buying off-the-plan land in an estate. How did you handle the gap between pre-approval expiry and title/settlement.