Hi all,
My wife and I are about to select a lender for a dual occ were doing in Chelsea Heights VIC. The land we are building on is basically owned outright and we want to secure finance which is stand alone. Ie. Not using equity from any other property we own. The unit will cost arounf $225K and upon completion will be worth approx. $295K. Is it possible to secure stand alone finance on this and what is a good interest rate for a construction loan? CBA are currently offering 7.2% with no establishment or acct keeping fees as we are on a wealth package with them at present. Any help is appreciated.[cowboy2]
You can definetly secure a construction loan against the value of the final project. The bank will lend you up to construction cost or 80% of the market value, whichever is less.
Their only issue will be servicablility. Even if you intent to sell them at the end of the construction process, apply with the intention of renting them out. You can always change your mind later.
The bank probably wants a letter from a real estate agent stating the likely market rent for the project and a valuation from a registered valuer (they may arrange this).
Another point. I would suggest to talk to a good MB (there are a few on this forum) about the different options. They arrange for the best solution for your needs and it does not even cost you anything (the lender pays them a commision). You have to be careful that you get the loan at residental rates and do not get classed as commercial.
Good Luck
There are some lenders that will lend based on end value of the project, even on Low Docs.
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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There are some lenders that will lend based on end value of the project, even on Low Docs.
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.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
There are some lenders that will lend based on end value of the project, even on Low Docs.
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.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 before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus this one.
Also as mentioned above by another member there is construction (development) finance which lends on the end value (completed project)
Please advise of the above I I will help steer you in the right direction and give you some options on where to lookKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus this one.
Also as mentioned above by another member there is construction (development) finance which lends on the end value (completed project)
Please advise of the above I I will help steer you in the right direction and give you some options on where to lookKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus this one.
Also as mentioned above by another member there is construction (development) finance which lends on the end value (completed project)
Please advise of the above I I will help steer you in the right direction and give you some options on where to lookKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus this one.
Also as mentioned above by another member there is construction (development) finance which lends on the end value (completed project)
Please advise of the above I I will help steer you in the right direction and give you some options on where to lookKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus this one.
Also as mentioned above by another member there is construction (development) finance which lends on the end value (completed project)
Please advise of the above I I will help steer you in the right direction and give you some options on where to lookKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]hi admin..i think there is something wrong with the forum..its adding more posts of the same..when only clicked add reply once
Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi Kylies.
It is a dual occ site. Front house to remain. The land val for this particular site is around $90,000. I think I would be going for a full doc loan as I am not self employed. I assume full doc would give us a better interest rate? Serviceability shoudn’t be a problem. We plan on renting it out and rent has been estimate by a property manager at $270-$280p/w. Help is appreciated.
Originally posted by kylies:Hi before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus this one.
Also as mentioned above by another member there is construction (development) finance which lends on the end value (completed project)
Please advise of the above I I will help steer you in the right direction and give you some options on where to lookKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Kylie, no need to repeat yourself 3 times!
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.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 there was a forum error, I only clicked it once but it added it heaps of times..it did it also on the person who posted before me
Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Kylie,
If you look on your posts, there is a small rubbish bin in the grey bar under your name. It allows you to delete the post.
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