Hi all,
We’re in process of purchasing a block of land to build 10 over 55 units in Bunbury WA. Unfortunately our finance broker has told us that he cannot help us as the project is too complicated and outside of his normal line of work.
The figures stack up well and we have investors ready to provide the required seed capital.
Any idea who may be able to provide finance for this development. As mentioned above, investors will be providing seed capital as we cannot support this size project with our incomes.
Thanks and best regards,
Chris.Hi chris,
Give one of the regular brokers here a call. They may be able to help.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958I know a commercial finance guy in Perth – drop me an email if you want to speak to him.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
hi Chris77
couple of bits of advice.
10 units is not a large development and is relatively easy to do but you may have a problem.
over55 are sepp5 units or town houses I don’t know for wa but I will go off nsw and you can check your state.
1. The units must be designed for 60 year olds may sound funny but alot over here arn’t.
2.They must be in an area were 60 year old want to live.
3. they can’t be lived in by people under 55 and you can’t market to people under 55 so re sale is a problem.
4.you can’t build and hold the profit in a unit or units as it hard to find over 55 tennants in a quick time frame.
5. a purchaser who wishes to get a lend on a unit will find it hard from a normal lender.
taking all of the above into count I don’t do sepp 5 developments and I get about 5 aweek here in sydney and each time I tell them that the figures don’t stack up.
If you ask your seed investors to take a return out of the profit ( I hope you are not giuving them a persentage return 15/20%)then they may have the same opinion as your broker over there I think he is saying its to complicated as he doesn’t want anything to do with it.
I would check my figures and then run it past an accountant with the pricing as sepp5.
The only sepp5 I know here that have been successfull is were they are attached to a nursing group.
my little piece of advice.
This can be look at as advice and it is be very carefullhere to help
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