Financing on vacant land is seen as a riskier type of finance by most financial institutions. This does not mean that financing is not possible! It simply means that there are a bit more lower loan to value offerings and more conditions as appose to buying a completed property.
Most banks finance 60% of the purchase price only, with a 20 year loan term, but some banks lean towards a 10 year term. There can be conditions as to say when you should have your property completed. Standardbank have an option where they can consider a 70% bond, but with a maximum loan term of 10 years.
When you do a building loan, that consists of the vacant land PLUS a building contract with building plans, the banks can look at higher loan values. Some only 85% bonds, and others up to 100% or 105% bonds.
So yes, financing on vacant stands are possible, but do your homework and make sure you know all the ins and outs before attempting this option.
