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Mate that sounds fine – a bank should lend 70%-80% of the total development costs.
Just as long as you have some skin in the game and the end value stacks up.
Do a total costings – be realistic; don’t underestimate and include a 5%-10% buffer for over-runs.
Engage professionals who know what they are doing; civil engineers; town planners etc. (this gives the bank greater comfort).
Ask the town planner/ engineer what bank/broker does this sort of finance – they generally are in the same circles.If you are looking at doing a subdivision a bank will want to know what the total costs will be.
They will then lend you a percentage of that amount.
Once you have completed the works and the council have approved the plans the bank will consent to this and you can get the titles sealed.
You need to be speaking to a banker/broker who has experience in this type of thing; I have seen so much go wrong with subdivision deals.
Thanks
