Hi looking at purchasing a 3bed queensland on 3000sqm, $295k, house has been relocated and needs to be finished off.
Can we somehow borrow the funds needed to finish the work without having to have a builder do the work, we want to do the work ourselves father inlaws a carpenter, brothers a plumber and will work for free.Have contacted a broker but they say the house has to first have plumbing and electrical connected before a bank will even look at it. And that we need to have quotes to do any work by a licensed builder before they will lend the reno funds and they will only release funds to the builder to do the work.
Is there anyway around this as this would suck almost all the equity that would be created out of the deal.
Have contacted several agents who say the house will be worth over $400k when finished. It will be our ppor.
Any help appreciated.
jayson
Hi Jayson
Common question with a difficult answer.
Would need to now more before confirming one way or other as there are too many variables.
Where is the property located, what is the lvr, what savings do you have, what is your serviceability like, is it being sold through a real estate agent etc etc etc.
Sorry no one answer as i mention.
Richard Taylor | Australia's leading private lender
Property is in townsville mt low, 4818. So it can be done straight residential loan. If I am correct if the value of the property is $400k when finished asking price is $295k we should be able to borrow 100% of asking price plus additional to do some reno's as long as valuations stack up. We can get first home owners grant as well. Savings are good and serviceability is fine. It is being sold through an agent.
The real problem we have with this deal is being able to do the reno's ourselves, we are fine with doing structural work through tradesman, but would like to do cosmetic work ourselves but the banks are saying they wont give us the money to do it and will only release the funds to a builder.
thanks for any help
jayson
Jayson
Sorry mate there lies the problem.
Wont get 100% of asking price plus reno costs and cant borrow against post renovation value.
After the announcement yesterday about the mortgage insurers re-catorgorising the Countries post codes you might find that 4818 needs at least a 5% deposit maybe more come post March 09.
Richard Taylor | Australia's leading private lender
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