I currently own a property with one block of 3 units on (2×2, 1×1) and have recently approached a building services firm to assist with an application for the construction of an additional block of units (2×2, 2×1) subject to council approval.
I am as yet undecided on whether i will sell the block with the DA or if i will pay a builder to construct these for me.
If i do get these new units built – could someone fill me in on finance requirements (Deposit, new loan or extension of existing facilities, likely interest rates etc)
Existing details are below
bought in Dec 03 for $130K (80% LVR with Colonial)
Revalued shortly after for $165K to draw down equity (80% LVR)
Current guesstimate on valuation $220K (based on sales of other similar properties)Would the bank use existing equity to finance construction?
Hope you can help
OSS
If you get a fixed price contract with a builder then most construction loans should suit.
Probably a rate under 7% and you should be able to use equity.
I cannot be more specific without more info. But I don’t imagine you will have too much trouble.
Cheers,
Simon Macks
Finance 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.
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