All Topics / Finance / Buy/Build and sell one
Hi guys
I’m quite new to this, but I can pick up pretty quickly and I am looking to do for the first time the following:
– Buy property with about 500-600sqm land,
– demolish the existing house,
– build a duplex (owner builder or go through a registered builder)
– sell/rent one and live in the other.
Both my partner and I are on 60k per year
I have one IP with about 50K equity and my potential borrowing is 420k alone
My partner 70k in savings and some shares and potential borrowing of about 400k alone
Now, I have been hearing that if I do not have more than one investment property the banks will not lend me the money
(I just wanted to clear and know that)
Also we were thinking if my partner buys the property and has me on the title, would I be able to get a building loan for the duplex? – is this the right way to do these?
Or do we both go on buying the initial property and after that we request for a building finance?We have allowed the following:
450000 VIC Property + 23000 stamp duty/legals = 473000,
To build both we have allowed total 150000 per one + demolish 20000 + permits 10000 = 330000 + 473000 = 803000 / 2 = 401500 cost and sell one at 430000Am I looking at this correctly or I have made mistakes and also on the allowance in the finance.
Thanks
hilander- This topic was modified 9 years, 11 months ago by hilander.
hilander
Banks lend money al the time to people with no property, 1 investment property or more. no issues with this.
if ‘your partner buys the property and has you on title’ then you would be buying the property! It may be possible for you to get a building loan, and/or your partner to.
This is no right or wrong way, but just different ways. Whether you should both go on title would depend on a whole range of things you don’t seem to be considering – see my newsletters for some articles on these topics.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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