Hello Guys,
I am planning to buy a property which I can subdivide down the line. I can get loan from a financial institution to buy a property. But they wont lend me to sub divide the property. My question is if I take a loan from bank A to buy a property and move into that property( so that I will be saving money on the rent ). In the mean time apply for DA to the council and get it ready for subdivision then go to bank B and borrow money to sub divide.
Thanks in advance for your guidance and help
Regards
Peter
Hi Peter,
In short the value of your property after it is fully approved is higher than when you first started, banks today are not speculating like a few years ago.
Philip Sigglekow
The DA is the key to the future value of the property. Until you are certain (ie; have a DA) then it is opinion/speculation. It should be a more attractive proposition for your financier when you can adequately communicate the value at completion of the sub-divided property. You need to paint this picture for them clearly.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
