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 430000

Am I looking at this correctly or I have made mistakes and also on the allowance in the finance.

Thanks
hilander

• This topic was modified 10 years ago by  hilander.