By purchasing the land first you save in stamp duty costs.
Land and construction
- This loan is when you are building a new home or making major renovations to your existing home or property.
- Land and construction loans are generally done in two stages – the first stage is funding the land that you have purchased; repayments will have to be made on this portion of the loan after settlement. The second stage is the construction process; the loan will be drawn down in stages as the house is built and you will be required to make repayments based on the balance of the loan.