Hi,
I’m after advice on the best way to set up an investment property loan.
I have recently put a deposit down on a block of land and am looking to either build a duplex on it or just a single residents but am not sure on how to set up the loan structure for it.I have a mortgage out on my own property but am not wanting to link the 2 together if possible.I will be using equity from my own property so i am not sure whether to use the same lender or to go elsewhere.Any help or guidance would be greatly appreciated.
Normally we would suggest a client access 20% deposit on the land and estimated construction amount from their own equity (obviously if this is not available you may still be able to go to 90% lvr) and then finance the balance of land and construction using the duplex as sole security.
No benefit at all in cross collateralising the 2 securities so certainly don’t get lured down that path.
Unsure the lvr you will require on the new construction so difficult to provide further details.
If you have a reasonable amount of equity then still doable at a sensible rate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
Sorry i should of added my financial situation.
Home last valued at $740K around 6 months ago, $460K owing and the block of land is $230K.I have a yearly income of over $150K and my wife $30K.
I’m not sure on what to build on there yet as i do not know how much i am capable of borrowing.
to expand Case, study this site and returns and developement projects on the forums and you will work out yourself if its suitable to build a house/duplex/subdivide or if only a build is possible under the planning scheme for your area.
This reply was modified 7 years, 5 months ago by Jaxon.