Hi All,
I have a property in East Toowoomba, DA approved to conduct a boundary re-alignment as it is already on two titles.
Property was purchased for $315K, current Val is $330K. The contract bank val was $375K but due to being purchased around the time of the floods and the ongoing subdued QLD market along with not too many similar sales it has never got back to that lofty $375K mark.
The operational works will be approx $50K, however not building at this time could make it a bit ugly in regards to the cut fill level, etc as there are no current house plans. I initially wanted to reconfigure and re-mortgage the back block etc. The best path appears to be do the build and reconfigure at once, as opposed to just doing the reconfigure for the time being.
Would a bank lend to me another 300K if I were to come up with a deposit of 10% to conduct the rear build as long as I keep the total LVR of existing house and new house mortgage under the required LVR. Technically I would be adding 300K worth of value, and that being said the bank would only take the 300K building contract value into consideration.
In my head the figures would work to keep the bank happy it would be more so the process and if it is possible.
I have thought about private finance or a JV Rent to Buy option, but due to the location I would prefer to keep the property. Although it is of only mild relevance and the next door neighbors house is gorgeous with all the bells and whistles its on the market for 1.2mil.
Would a bank consider this and or are there any other potential ways?
New build sale price would be 500K. Rent 480 per week.
Thanks!!!!
Anyone ?
a bank would certainly consider this as long as you did it in stages by financing against the property for initial costs and then once approved re-apply based on the new end value …
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