Hi,
I am having some finance problems and hopefully someone has been through something similar before.
I have a contract on a piece of land in QLD. The previous owner has development approval going through council (not approved yet) to sub divide the lot into 20 blocks. The bank is refusing to value the land as residential and needs it to be commercial.
My plan is to develop the land in 3-5 years and not right away. I cannot afford a commercial loan at 70% and was looking to borrow 95% on a standard residential loan through CBA.
I believe I should be able to purchase the land now as a residential block and understand the loan would need to be changed to commercial before the land is developed which is OK. However I have tried explaining my 3-5 year plan to the bank and they are not happy with it.
Does anyone have any suggestions how to get this financed? Maybe removing the plans from council? I am not sure.
Thank you.
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