Hi Everyone
I currently own a property (no debt on ppty) in partnership with my brother. We are looking at developing this ppty, and building a duplex on the site.
My question is what should we be looking at in terms of finance (loc, 100 % redraw, etc) and what would be most advantageous when coming from a position of not owing any money on the ppty. How much will the banks generally lend in this scenario?
For some further info, I am looking at living in one of finished duplex development, and my brother is looking at selling his half.
Peter Perdikos
Video Email – The new & improved way to communicate
http://www.getworldpassport.com/petersHi Peter
Unless you have funds of your own to put into the project then i assume you will require 100% financing which given the equity position should not be a problem.
Obviously if the property is owned Jointly with your brother (I assume Joint Tenants) then you will both need to be a party to the new construction loan.
I am unsure as to the exact figures so don’t what the loan balance will be after you have completed the project and you brother has sold his property but suggest you try and make your loan flexible enough to allow lump sum payments and also an offset A/c.
If you want to post actual figures on or off the forum then I would be happy to offer further suggestions
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Construction loans are readily available these days, and a duplex shouldn’t be a problem – even with a no doc/ low doc.
Depending on the value of the land, you could also just borrow against this.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.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
Thanks for the replies Richard and Terry,
I was actually hoping that we would be able to secure 100% finance for the development, which would suit both of us and we are aware of the need to both be party to the loan.
Richard you talk about a loan being flexible enough to make lump sum payments, have an offset a/c, etc and it is these area’s which I am unsure of. I am familiar with what the products are, however considering the situation with two people who have different goals, I was simply thinking of gaining finance for the development to drive that through, and on completition my brother and I would then re-finance seperately.
Is this a viable path to take or should we be looking at setting up the correct finance vehicle so to speak from the outset?
Peter Perdikos
[email protected]Video Email – The new & improved way to communicate
http://www.getworldpassport.com/petersPeter
Yes it is however if you were my client i would try to save you the additional costs of refinancing down the track and look for a suitable product that suited both requirements.
Your brother is going to sell presumably and you retain the property and some of the loan.
100% funding is no problem given your existing equity position.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Thanks for the reply’s and info guys, its definately something I hadn’t thought of before.
Anything which saves time and money is a great thing and I’ll be passing on this info to the dear brother.
Peter Perdikos
[email protected]Video Email – The new & improved way to communicate
http://www.getworldpassport.com/peters
You must be logged in to reply to this topic. If you don't have an account, you can register here.
