Hi
Can anyone please offer me some advice.
I am an expat living overseas and I want to build some townhouses on some land in Melb. How should I structure myself? We own two investment properties in Australia but I dont have any personal income and my husband is a non resident. I am also seeking advice on how to raise finance.
Look forward to some advice.
TWhat do you want to achieve? Asset protection? Distribution of profits? etc
What role will you take? Builder? Developer? Passive investor?
Who will hold the building licence? You/spouse? Contractor?
Have you purchased the site already?
Hi Scott no friends
The purpose is wealth creation. We would take the role of
developer and a contractor would need to hold the building licence.
No we havent purchased the site yet, but have finance for the land raised.
Just in the process of doing some homework first before taking the plunge.
My husband and I renovated two properties in the UK with great success and are interested in getting back into it in the form of townhouse building.
Any advice would be greatly appreciated.Depending on the number in the block and the amount of equity you have in the existing IP's financing the construction shouldn't be that difficult.
Lvr will be limited being expats but then again many people do it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi T,
It is far easier to fiannce developments that are held in a special purpose vehicle ie a company or trust with a corporate trustee. If you seperate it from your personal finances as much as possible the lender is able to look at the project in isolation, so if it stacks up you will have no issue getting finance. The main issue you will have is the management of the project, you will have to appoint a project manager as well as a builder. In Melbourne you should be able to lend up to 70% of end value if you are willing to pay higher rates and go outside of the banks, bank fiannce would be a maximum 80% of costs, you would likely get knocked down lower than this though because of you residing overseas.
Regards
AlistairT Alistair is based in Melbourne and an excellent finance broker with vast experience in development finance.
I personally would drop him a line and get him to organise the finance for you.
At least this way you now it will be done properly.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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