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In most cases Banks have no trouble lending for land and houses as it a secure investment for them. 

The security of a property is ideal for the bank to lend for, much better than personal loans and cars. 

However, the bank likes to have you put up all your savings as deposit. The more you put up the better for the bank in case something goes wrong in the future. 

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“Hold onto your Cash!”  

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You are best to put the bare minimum up as a deposit on the land when your owner building and hold as much as you can for the construction. 

The banks do not see shipping containers as a good risk for them, as they are hard to repossess and hard to resell in a foreclosure situation.  I know this is a hard way to look at it but banks look at it that way. 

So that works if you are buying the land, however if you already have the land it is a different situation altogether.  

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If you have purchased the land earlier you can use the equity in the land to get a new loan.  In most cases, you will need to refinance and this will help you get the money for the construction.  The presentation of the application is the key to getting finance so you are best to talk to a finance broker especially one that knows about owner builder loans. 

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Finance Brokers – Here! There! & Everywhere!! 

Finance brokers, they seem to be everywhere, every man and his dog seems to be one or have one they know and recommend. 

My experience with finance brokers is, when they are good they are very good, when they are bad, they are very bad!! 

Let’s face the facts, the difference between getting the home you want and just getting a home is how much can be borrowed.  

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Choosing an Investment Loan Strategy  

Property loans are pretty much the same as any other type of home loan.  You can choose fixed, variable or split interest rates and flexible features like redraws. 

Improving your property, you should develop loan strategies that are flexible and cost effective.  

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Simon Say’s “Hold onto your Cash” 

• It is all about presentation, and having all your ducks in a row before you make an application.  

• Finance these days is a lot different and banks are more responsible in their deals and applications, so you need to protect your credit rating like you protect your cash or family, you need to do everything possible to ensure your credit rating is A1.  

• Recent law changes let business and finance companies place a bad mark for as little as an overdue bill. Therefore, setting up direct debits for regular payments is not just time efficiency, it is imperative to make.