Hi
I’m looking into subdividing my PPOR, it meets all of council guidelines, however after conducting a feasibility its going to cost $70k.
I currently have $20k in the bank and little to no equity as I only purchased the property 4 months ago.
Other than a personal loan, what other options are there for funding this project?
Any suggestions will be much appreciated!
Thank you
$70k!!! Why so expensive.
You wont get a personal loan for that sort of amount.
You have very little alternatives as it sounds like the loan was incorrectly set up in the first place.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
So you borrowed 100% for your PPOR?
Cheers
AndrewsuperAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auFind an investor to go in with!
$70k sounds cheap, my stormwater drainage alone is costing me ~$75k, plus cost of easements, DA, Services etc…Am happy to chat more…
Mate that sounds fine – a bank should lend 70%-80% of the total development costs.
Just as long as you have some skin in the game and the end value stacks up.
Do a total costings – be realistic; don’t underestimate and include a 5%-10% buffer for over-runs.
Engage professionals who know what they are doing; civil engineers; town planners etc. (this gives the bank greater comfort).
Ask the town planner/ engineer what bank/broker does this sort of finance – they generally are in the same circles.Sorry Manuel that comment is rubbish.
Traditional residential lenders do NOT lend on end value irrespective whether the deal stacks up or not.
The original poster made comment that he had very little equity in the purchase so i am assuming it was a mortgage insured loan.
To tell him that a Bank will advance him funds is misleading an inaccurate.
Please try and stick to facts when posting on this forum.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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