All Topics / Value Adding / DA permit & valuation

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of fxdaemonfxdaemon
    Participant
    @fxdaemon
    Join Date: 2013
    Post Count: 114
    June 1, 2016 - 12:10 pm

    Hi experts,

    I’ve got a decent block that I am planning to apply for DA for a duplex.

    I am prepared to put in own money to the point of permit issuance.

    Will lender value the same property higher with the DA permit granted without the actual development?

    Obviously my plan is to leverage on possibility of a higher valuation to fund part of the development costs.

    Thanks,
    FXD

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010
    June 1, 2016 - 12:53 pm

    What size development is it? ie how many units. If it’s a resi based loan the DA will not provide an increased value. In some cases a commercial val will, but it comes down to the overall picture on end construction vals, peak debt etc.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of fxdaemonfxdaemon
    Participant
    @fxdaemon
    Join Date: 2013
    Post Count: 114
    June 1, 2016 - 11:34 pm
    Corey Batt wrote:

    What size development is it? ie how many units. If it’s a resi based loan the DA will not provide an increased value. In some cases a commercial val will, but it comes down to the overall picture on end construction vals, peak debt etc.

    Hi Corey, as per my OP it’s only a duplex.

    Thanks,
    FXD

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.