hello all
I find myself in a bit of dilema at the moment ,we have our ppor that can be subdived and two more house can be built giving us three houses in total, but trying to sort out where and what sort of finance to get is a bit of a stubling block as our credit is not to good due to business failure cam anyone please advise which way
Thank you
MichaelYou should be able to borrow 80% of the value of the property as long as you can demonstrate ability to service this debt. You should also be able to borrow on the finished development product as well.
Another way to look at it if getting finance is too big of a hurdle is to get your approvals in place and then sell the property to a developer, you can then take the funds and buy another place and end up with a net gain without having to rely on finance to develop.
Hi Michael
Depending on the level of bad credit you might find it almost impossible to get financing for such a project.
There are so many variables and without knowing more it is too hard to provide you with an answer.
Richard Taylor | Australia's leading private lender
In the current lending market established builders and developers with long histories of successful projects have enough trouble getting reasonable terms out of lenders..I think the comment about doing the DA / BA and onselling might be the only way you can do it.. you could work in keeping your PPOR as part of the contract..
That said, keep asking the brokers/lenders….you never know…Hi Michael,
One option could be to enter into a joint venture agreement with a builder, whereby you put up the land, and continue to keep paying the mortgage on the land, the builder finances and constructs the homes, and he keeps one as payment. Sometimes a financial payment may be necessary to balance the deal, to ensure a win / win to both parties, with a legal agreement in place to protect each party's interest. I entered into one last year, for a development in Mckinnon, Victoria when finances were tight, and it worked out really well for myself and builder alike.
Good luck
MccozHi Michael,
One option could be to enter into a joint venture agreement with a builder, whereby you put up the land, and continue to keep paying the mortgage on the land, the builder finances and constructs the homes, and he keeps one as payment. Sometimes a financial payment may be necessary to balance the deal, to ensure a win / win to both parties, with a legal agreement in place to protect each party's interest. I entered into one last year, for a development in Mckinnon, Victoria when finances were tight, and it worked out really well for myself and builder alike.
Good luck
MccozGood Help Thanks for Sharing This..
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