Am in negotiations to purchase a propety inQLD with good dual occupancy potential. There is one house on the land with room for another next to it (the land is too small to sub-divide, though council has told me that once a 2nd house is errected a sub division can then be applied for).
I have low doc finance to purchase the property, using all my cash as 20% deposit. After the purchase, though I will have no deposit to finance the dual occupancy and development of another house, unless I wait to save for a deposit (don’t want to wait).
What options are available out there for financing of part 2 of my venture?
Any contributions much appreciated.
Hi Wazl,
Some banks will lend against the end value if you have a fixed price building contract. Check with your lender, or else get a broker to organise a lender that will do this.
Regards
AlistairIt is true in Vic that once council have approved your plans to build No. 2, subdivision will be approved as a matter of course. I gather you have checked with Council that the land meets regulation size to permit 2 homes. Are you planning to renovate house No. 1, Are you planning to live in it or rent it? Could you have it revalued after reno. Could you rent cheaply elsewhere, rent No. 1, take rent into account with bank for serviceability on reserviced loan. Could you sell house No. 1 and use proceeds to build No. 2 and thereby owning No2 and using equity to go onto next project. (Sometimes you have to go back to go forward)
Fern
Wazi
I have just financed a property where 2 houses are being built on the one block of land with the single title being on 2 Lots in Coopers Plains.
This application was full status however you would be suprised how many lenders would not lend more than 70% as their was 1 title.
What part of town is the property, the zoning and the land size.?
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
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