We have finally been granted a planning permit to build 2 townhouses in the Sth East suburbs of melbourne. Spent 350K on property 2yrs ago (now worth 420K) no fiance required. It cost 20k for plans + consultants, a local realestate agent valued the completed units at $650k each and have had the building work estimated at 250k each, my question is is the properties title enough security to finance the project?
Very tenatively, because there is limited information I would suggest that the answer is maybe.
Depends on lots of factors and you should discuss your needs with an expert.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
As a guide, you could borrow up to 80% of completion value. 80% of $650,000 = $520,000. You must still show serviceability to borrow the money at this LVR. Going on some no doc type loans, you could get about 66.6% = $432,900.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi LJCooker,
Based on the info you have supplied, and assuming you can service the loan, you should be able to borrow 100% with a major lender, I will need more information to help further,
Regards
StevenMortgage Broker
[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
So end value is 2 * $650k = $1.30 million
And you need to borrow $20k + 2 * $250k = $520k. Is that correct. (I assume you have no exist loans against this property as you said “no finance required”)
Serviceability may be an issue.
I think its a pretty strong deal and you should have not problems so yes the properties title should be sufficient.
Cheers
Stu
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