I have bought a property that I will want to tear down (mid next year)and build a couple of duplex’s. [biggrin]
I have read that there are some banks (don’t know who)that you can take out a construction loan that is paid in stages as the property is built.
Do any of you finance guru’s know anything about this type of loan, how it works etc [blink]
Thank you
Jenny1
Hey Jen,
There most certainly is a construction loan paid out in stages!May be worth contacting Richard (QLD007) privately. He may be able to help out!
It dosent matter what state you are in. You have to send faxes and make phone calls whether your broker is next door or in another state!
We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
[email protected]
phone 0412 437 582Thanks Dr X,
just love this forum, people are so generous with their time and expertise (you included of course).
I have met some lovely people through here that have taken the time to write/ring me up when I am in the p**, and sort me out or offer advise!
Thanks again
Jenny1
Thanks very much for the compliment Xenia i always try and offer clients the best advice for them and not what benefits me.
Funnily enough Jenny I have just done an application this week for a client who purchased an old queenslander house sitting across 2 lots. .
The house is to removed and 2 houses to built side by side. One to be occupied as a PPOR and the other as an investment property.
Funnily enough the initial issue with a lot of lenders was the multiple dwelling on 1 title (albeit on 2 lots) but thankfully we have got around that and loan was approved in a couple of days.
With a construction loan Jenny the lender charges you interest on the amount of money released to you. This is usually in 4 to 5 progressive stages. At each stage the lender will release further funds (normally directly to your builder) and consequently the amount of interest paid by you increases accordingly.
Happy to assist further if you care to email or PM me.
Cheers Richard
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Hi Jenny,
Most lenders offer construction finance, repayments are usually interest only during the construction stage and as Richard mentioned the funds are released in progressive payments usually 4 or 5 stages, the final stage being lock up.Vacant land can be used as security/deposit over the construction loan (LVR permitting) based on the end value of the completed project.
Most lenders will incorporate construction finance into most of their product suites i.e. professional packages etc. Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Steven
Thank you for info, hope I don’t have the dramas I had with loans etc for this next project! The whole thing aged me 10 years.
Cheers
Jenny1
Hi Jenny,
Yes I remember our discussions regarding the problems you were having with that last chap.Keep us posted when the time arrives, cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
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