Hi team,
Just wondering if anyone has any advice or experience in getting finance for a small subdivision development… Specifically I plan on building 2 houses on the one site, holding them until the 12 months expires then selling them off. I was thinking it would be much cheaper to take out a personal loan to cover the interest only payments for this period of time. For example: Development total comes to $800k, total interest on this for 12 months on an interest only loan is $45k, borrow $45K on a personal loan again on interest only = $125 per fortnight repayments. I understand that yes I will have to pay back the $45k loan on top of the $800k for development, but the profits made from this development would more than cover that. So with the "Global Financial Crisis" is it still possible to get a personal loan to pay off the bigger loan……..
Thoughts and ideas please!
Andrew
Andrew
Rather than using a personal loan you could fund the deal from a investment line of credit or even capitalise the interest.
This is a structure we establish for many client undertaking small developments.
Richard Taylor | Australia's leading private lender
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