All Topics / Finance / New owner developer

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  • Profile photo of peter.mateypeter.matey
    Member
    @peter.matey
    Join Date: 2010
    Post Count: 9

    Hi,

    I am thinking about doing a small sub division of splitting a property into two. Just to put it out there this is going to be my first project.
    I have got builders license with me. Banks are hesitating to lend me more than 80 % LVR.

    My question is are there any more lenders who will be willing to give it a thought.

    Thanks in advance for your reply

    regards

    Peter

    Profile photo of illuminatiilluminati
    Member
    @illuminati
    Join Date: 2006
    Post Count: 81

    lenders tend to shy away from owner builders. if you can show proof of your building skill or some history then it might give them more confidence in your skills.
    there is a tendency for owner builders to attempt more elaborate construction designs, or to not document the designs accurately enough, resulting in building mistakes, or cost over runs that make the bank uneasy. where as when hiring a building the developer tends to have good detailed plans and a strong desire to get it all done properly.

    So yeah, get your design and plans all done properly and some history to show your skill and you might have some more luck.

    Profile photo of thomsonthomson
    Member
    @thomson
    Join Date: 2010
    Post Count: 31

    Westpac are going above 80% for me but then it is all going to be done by commercial builders and it is my own PPOR.

    thommo

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    get a relative involved, through a trustee maybe, and then you build for them.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of peter.mateypeter.matey
    Member
    @peter.matey
    Join Date: 2010
    Post Count: 9

    Thanks for all the replies,

    As suggested by illuminati I need to have water tight documentation, like design, quantity estimation etc. The other side of story is to get a relative involved through a trutee and let them employ me to construct their property.

    I will kepp you guys posted with the developments, over the weekend I am going to have word with my relative who I think should not have a problem.

    regards

    Peter

Viewing 5 posts - 1 through 5 (of 5 total)

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