Hi All
I have a problem I am hoping you can help me with.
I am currently buying a block with the intent to build a new home on for myself. This has taken most of my borrowing capacity from the banks, thus my dilemma below. Also I haven’t yet finalised the purchase or finance, so am completely flexible at the moment, but am very keen to build this house.
I also have two other blocks on hold from a developer until 31st December that I could build on and sell for a profit. I need a creative financing solution that will allow my to buy all three and build on them. The banks have told me I can borrow about $265K cash but I need:
$240K for my House – Will end up with at least $130k collateral once built
$240k per house (100% finance) X 2. I expect $30K profit each.What options are available to me.
Any help or suggestions would be greatly appreciated, even if I only end up getting one of the other houses.Thanks in Advance
DamianPS what is PPOR?
Hi Damian,
PPOR = principal place of residence. Also known as O/O = owner occupied.
You sound like you have options, just not a huge amount of time. I am a broker in Brisbane and may be able to help either personally or by pointing you to someone else in your region and I think getting more info from you offline may be best.
There are lots of loan options for this type of proposal depending on your circumstances so don’t stop trying!
Cheers,
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Mel
[email protected]Mastermind, a profit of $ 30k per dwelling isn’t all that good considering that many things can (and do) go wrong.
Perhaps you have paid too much for the blocks to start off with ?
Can you detail the costs involved (purchase price of the land, building costs, landscaping including driveways, supervision by a builder or architect, selling expenses, holding charges until sold, legal expenses – including perusing the building contract etc, etc.) ?
You definitely need someone to check the construction as it is happening as many builders aren’t beyond taking shortcuts or making mistakes (for which you may have to pay the price later).
Has the builder given you a fixed price or is there a possibility of additional expenses you may not expect at this stage ?
Pisces133
G’day Damian…
Geez and I thought I took risks!
You asked for “creative Financing”… bloody hell you need JC himself to pull this one off.
Time is not your problem… You appear to be biting off far more than you can chew Damian. There is no way that you can expect to make a lousy $30k on a $240k purchase… that’s just 10%. I would want at least that % for error.
You appear to be having difficulty in getting $$ for building and then you throw us a curve ball and tell us you’re going to borrow/develop another 1/2 million on top of the first problem.
I suggest you go away and think it through Damian. It appears that you are hoping you’ll make $60k to help in building your own home.???
Personally, I reckon there are better odds at the racetrack than what you’re contemplating.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages, Option Writing & Forex. [email protected]sorry but i agree with Bill
cheers
s.i.s
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