You have 3 options Madmax:

Option 1: Get your broker to call a bank that can do a relocation loan, e.g. St George and get him to structure the application in that way

Option 2: You can call a bank that handles this type of transaction such as again St George

Option 3: Find another broker

Regards

Shahin

I hope I am mistaken but that tells me your banks wants to cross securitise your properties. Be careful in how you structure your loans for your next IP.

Also equally as important – do a cashflow analysis so see what are your net operating costs vs the potential for CG growth. 

Regards

Shahin

Ok so the equity you have in your current property at 80% is $236k. The question then becomes how much do you use for your next IP purchase. Be careful about using all of it. If you have an aggressive IP strategy it may make more sense to borrow less.

I would look at something with land content – opens the door for renovation, extension, development, subdivision, selling the property with a DA, etc.

The next question is are you comfortable with buying in other areas other than Tweed?

Regards

Shahin

How are you calculating equity?

Also why purchase a unit for $230k with a rental of $270 p/w? IS there strong CG potential?

Regards

Shahin

You can do this with mainstream several lenders under a relocation loan. The interest will be capitalised so the fact that you don't work is not an issue.

If you are doing a vacant land and build then you will have 12 months to construct and sell the current property.

Regards

Shahin

If you haven't done so already – ascertain the councils DA guide and explore the options. Get an idea of what can be done and what cannot be done.

Secondly, contact the town planner at the council and talk to him/her about what you want to do. You generally have only 15 minutes so you need to be very specific with your questions. Make sure you do your homework on the zonings, etc.

Thirdly, get in touch with a town planner you can help prepare the application for you. There are a series of things you need to do such as surveys, etc however the TP can go through this with you.

What council are we talking about here?

Regards

Shahin

Ok so LVR is ok – you should have an issue with this. Find a good broker and he/she will sort it out within hours.

Regards

Shahin

Most brokers and bankers can get you the APM Reports for free so don't waste your money. You should only be looking at the past sales and the current properties on the market. The system valuation of the property is often out. 

I don't rate ANZ too highly. They only go to 70% LVR on 2 titles which is a massive road block as many investors look to construct at least 2 properties on their blocks, their servicing is quite conservative and their policies are quite outdated. 

Regards

Shahin

Because the council will not issue completion of the second stage (i.e. subdivision) if the first stage is not complete (i.e. the construction). This is how the lender will view this. This would definitely be unacceptable for the lender. I know what things can be pushed and negotiated when it comes to policy but this is not one of them.

Your broker would have done a lot of work thus far – if he is unable to assist then I will look at the application.

PS – the final payment of the progress schedule is generally the smallest amount.

Regards

Shahin

It doesn't work that way – both the lender and in turn the valuer will go by how it is staged in the DA, i.e. construction first and then DA. 

Does the building contract include everything? Did you remember to include things like demolition costs, site costs, fencing, retaining walls, driveway, etc? This all goes towards the construction costs.

Regards

Shahin