WHAT IS A LAND LOAN
Buying loans can be an exciting journey and experience for first timer. Land loans come in all shape and sizes and they are unique compared to the existing home loans. Therefore, it is better to the requirements in land loans, before you consider investment in land. You may find that it is not easy to get financing for land purchase from commercial banks, and the only option is private lenders.
When do you buy land?
People purchase land when they saw a good prospect for the land. Some might purchase the land once they saw an opportunity such as great new epic development planned on the land by major companies or if there are further development plans by the government.
Applying loans from the commercial bank is not easy especially if you are just buying for the vacant land. Land loans are also riskier because the value of the land could be affected by many reasons such as approved land use, condition of the land, nearby surrounding, and many other risk factors. Therefore, many commercial banks do not like to finance purchase of vacant land.
However, if there are development plan for the land, ie you plan to build a property on the land, banks are more incline to consider your loan application, because most of the risk factors are minimized. Thus, that is why lands with immediate development plans are the easiest to get financing from the commercial banks.
Only selected banks offer loan for agricultural land such as palm oil estate but most bank did not offer. Find the lender which is more familiar with your area because they are more willing to work it out.
If you are looking for Land Loan, please call +6011-2930 9300
Alternative financing for land loan
However, sometimes the opportunity to buy land at under market value comes just once in a lifetime. If you encounter these loans, and you are not able to get loan from commercial bank, the only option is private lenders. The loan requirements are less stringent, and approvals as well as disbursement of cash are quicker, hence you can get the transaction settled much faster. Feel free to check with us on how we can assist your cash flow needs.