Hi All,
I haven't previously been involved in property investing so please forgive the naive nature of my first post. Would be interested to hear everyones opinion on this topic, in particular anyone who has previous experience in building villas.
I am currently looking at buying a 750 m2 site in a new estate which has DA approved plans for 2 freehold villas, 3 bedroom for $105,000.
Now what would my substantial costs be after purchasing this block (apart from building costs of course) ?
Does anyone have a rough idea what building costs might be ( I understand this is a vague sort of question, but I am just doing some basic sums here) ?
What sort of deposit would I need in order to borrow funds for the building costs, the usual 10-15%?
And would I be better approaching a bank directly for the funds, or a specialised broker?
Thanks Very Much
Hi Matthew
Firstly welcome to the forum and hope you enjoy your time with us
Hard to comment without knowing more about them but assuming they are lowset basic finishes then you are probably looking at around $850 / square metre.
Depending on which area you are in you might find one of the big Contract builders would look at the deal (I have recently done a couple through Dixon Homes and they were good value and excellent quality and service.
On the question as to whether you should use a Broker or not well must admit i am slightly biased however that is after years of seeing how Banks have no idea on how to structure a loan for investors and will hardly tell you that you could do better elsewhere.
Even though it only a duplex you would suprised that some lenders will not like 2 properties on the same Title.
A Broker can give you more choice and flexibility. 90% should be available all things being equal.
Richard Taylor | Australia's leading private lender
Thanks for the info Richard much appreciated!
I assume that lenders would not be keen on 2 units on one title as it is easier to sell one unit then it is to sell two, would this be correct?
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