All Topics / Finance / Subdivision Funding

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of aaronaaron
    Participant
    @aaron5777
    Join Date: 2015
    Post Count: 4

    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

    Profile photo of NoobugawaNoobugawa
    Participant
    @noobugawa
    Join Date: 2015
    Post Count: 16

    $70k!!! Why so expensive.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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

    Profile photo of superAndrewsuperAndrew
    Participant
    @superandrew
    Join Date: 2014
    Post Count: 188

    So you borrowed 100% for your PPOR?

    Cheers
    Andrew

    superAndrew | Property Analyser and Finder Tool
    https://property-analyser.com.au

    Profile photo of Tlees1611Tlees1611
    Participant
    @tlees1611
    Join Date: 2015
    Post Count: 1

    Find 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…

    Profile photo of ManuelManuel
    Participant
    @caferacer
    Join Date: 2015
    Post Count: 2

    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.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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

Viewing 7 posts - 1 through 7 (of 7 total)

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