I don't have experience building units only villas and houses but that aside there are a ton of things that you may or may not be up for. Also certain items could vary – for example site costs could cost you anywhere from $10k to $120k.

Regards

Shahin

Hi Susan,

I have received and responded to your email. There are 2 other lenders that have that policy – I normally use Westpac for these types of scenarios as they tick a lot of boxes whereas the other 2 don't (Admittedly one of the other lender is not available via the 3rd party channel). 

Semi is not an issue but there are half a dozen aspects that are considered when a valuation is completed so we can order an upfront valuation to ensure everything is fine with the security before any further steps. 

Regards

Shahin

I have personally done 3 dwellings on a title and then subdivided. Where is LMD? Are you referring to units, villa, or townhouses? Have you got DA and CC already? What are the sites costs like?

Regards

Shahin

Builders are never good or bad as they rely on tradespeople who may or may not do a good job. 

Regards

Shahin

Hi Susan,

We deal with these scenarios all the time and had a loan approved for a member in Coogee recently.

If the property is an investment property and meet all the other conditions of the loan (i.e. servicing, employment, property type,  etc) I would suggest you either:

1. Go to Westpac directly or

2. Tell you broker that Westpac has a no age policy on investment properties.

Regards

Shahin

Hi Jean,

I just had a look and wow seriously. Are you sure the builder has a licence to build?

Do you know how expensive it would be to fix the storm water pipe and they didn't put drainage on the balcony?

People that do not understand NRAS will generally knock it. General stock (particularly those in Brisbane) are overpriced however if you pick the right property – the benefits are massive. 

Any reason why you have gone with Heritage? 

Regards

Shahin

Set yourself a checklist such as price range, net yield percentage, minimum population of the town you are investing in, availability of transportation, employment and amenities. Also start expanding your search and look at opportunities interstate that may suit your criteria. 

Regards

Shahin

There you go Matt – I bet that the property is Over 55's. Whilst this is not necessarily bad – it does carry restrictions which would affect finance and in turn resale.

Run this by your banker/broker before signing on the dotted line.

Regards

Shahin

Hi Brendon,

I know its a bit of a cliche response but it is honestly hard to answer that question with the accuracy it deserves. 

It is dependent on a number of factors. What type of investor are you? Are you a passive investor? I have a lot of buyers (particularly overseas buyers) that come in and want a brand new unit with minimal ongoing maintenance. They are not interested in renovating, etc. 

Or are you an aggressive investor that has the ability to dedicate time and effort into the investment? For example, by way of renovation, subdivision, etc? Calling the local council, understanding zoning, policy, etc. 

What does your cashflow look like? Can you afford negatively geared property for the sake of strong capital growth potential? 

Best to work with a 'team' of people, accountant, broker/banker and explore the option. 

Whatever you do please do the numbers – they will never lie to you.

Regards

Shahin

Just to extend on the above point – assessing a loan for an SMSF loan has no bearing on your personal liabilities unless you are going above the 9% contribution. Then you will be required to provide your full personal asset and liability position. 

Regards

Shahin