So we purchased our property last year Sept, got it for a great price and had a excellent deposit, we have done extensive work on it and love it a lot - but - we foster kids and we also have international student staying that cannot return home due to Covid, We are thinking of sizing up or buying a little piece of land and putting a tranported house onto it or building. Our mortgage is through a finance company who have been awesome as the banks turned us down. My questions - will it be frowned upon if we sell so quickly after buying ? by the finance company - and how much deposit do you need for land ?

little_penguins - 2021-01-11 09:33:00

Will you be caught by the 5yr brightline tax?
Ouch! Makes it a lot more difficult to get ahead.

pcle - 2021-01-11 09:37:00

I have not heard of that - i will need to look into it.

little_penguins - 2021-01-11 10:25:00

little_penguins wrote:

I have not heard of that - i will need to look into it.

own house exemption - you’ll be fine

sparkychap - 2021-01-11 10:27:00

Yes I just looked it up on the IRD site and own home is fine, we didnt buy it planning to sell it at all , its only been in the last couple of months that we have been feeling the cramp !!!

little_penguins - 2021-01-11 10:40:00

Hiya, check your loan documentation for any early repayment charges, as it's a finance company highly unlikely to be any but check first. I do 100's of these types of deals so happy to look over if you wish.

jeffqv - 2021-01-11 13:27:00

jeffqv wrote:

Hiya, check your loan documentation for any early repayment charges, as it's a finance company highly unlikely to be any but check first. I do 100's of these types of deals so happy to look over if you wish.

Very decent of you.

johnston - 2021-01-11 13:36:00

johnston wrote:

Very decent of you.

Thank you kind Sir!

jeffqv - 2021-01-11 13:37:00

Thanks Jeff - there are no early repayment charges PHEW - so no tax and no early out charges, if we buy a little bit of land in say the $245 mark how much would we need as deposit ?
and can we borrow to build ?

little_penguins - 2021-01-11 16:14:00

and is it more cost effective to build or transport a home onto a property

little_penguins - 2021-01-11 16:57:00

You ask your mortgage provider how much deposit you need to purchase.
Moving your own house on will be cheaper if you do due diligence.
Building new may be worth more, depending on design and location.
We moved a bungalow 28 years ago, was all good.
Do plenty of research on the land you buy /problems, council requirements if any, and anything in the pipe line as in new planning.
Good luck.

msigg - 2021-01-11 17:22:00

land deposit depends if services already at gate or not- if so services thinned today higher deposit (i.e. bank won't loan as much). All depends on own finical situation so speak to your bank or broker.

aromatherapy - 2021-01-11 18:42:00

little_penguins wrote:

and is it more cost effective to build or transport a home onto a property

I would build as transportable can get very expensive unless you do all the repairs yourself.

3tomany - 2021-01-11 19:24:00

Is it a bigger house you need or extra land to what you have now or both? Would a couple of sleepouts work for you and you could stay where you are? It would depend on the age of the foster children but, if older, it may work for you.

kacy5 - 2021-01-11 22:11:00

I thought of adding a sleep out but we are basically on a postage stamp section with no room to budge anymore - I guess ultimately its the land being bigger will help out the most with room for the kids to run around more freely

little_penguins - 2021-01-12 08:36:00