Hi all,
I want to buy a block of units as part of my portfolio. I am having huge amounts of trouble finding anything close to what I am looking for, as generally each unit is owned individually, but I want to own the whole block, and avoid body corp etc.
My question is, has anyone built a block of units before? I have no idea how much a 6 x 2 brick block (think 1980s 6 pack), and I was wondering if anyone was able to give me some idea of where to start my budget.
Any help greatly appreciated.
Thanks,
VictoriaReason can answer questions,but imagination has to ask them. — Ralph Gerard
Before looking at building a six pack, check with your finance specialist. Not too many banks want to do anything above four units as a residential deal. Six pack may be a commercial deal (however AXA Home Loans may look at a six pack on occasion).
Four pack, probably can get done at 90% LVR, six pack, commercial deal, may be 65 or 70% LVR.
Gary Young
Home Loan Connexion
Mobile 0407 64 66 32
Fax +61 7 4636 4841Thanks for the heads up, Gary.[
]Would this be the same deal with buying an existing 6 pack? How about if it was 2 or 3 duplexes on a block?
Thanks,
VictoriaReason can answer questions,but imagination has to ask them. — Ralph Gerard
Hi Victoria,
It really comes down to how many titles the units are on. For instance, I researched a deal for an 8 pack of units. No bank would touch it, as it was on one title. However, if it had been built on two blocks (titles), they would have been happy to do the deal as residential finance at 90% LVR (max of 4 units per title).
AXA Home Loans has told me repeatedly they will do six units on one title at 80% LVR, but haven’t had the chance to prove it yet.
Is this helping you?
Just so you know, I’m currently paying down my O/O home loan to gain sufficient equity to do a Lo-Doc deal to construct a duplex in Toowoomba or Dalby or Warwick. May even consider a triplex, but depends on the block of land at the time.
Gary Young
Home Loan Connexion
Mobile 0407 64 66 32
Fax +61 7 4636 4841Hi Victoria,
They are around from time to time. In the last 6 months we have purchased a block of 4, and last week settled on a block of 5. Both +ve geared.
We got 80% finance OK for both. Over 6 units gets tricky, and gets appraised on a case by case basis from what I believe (NAB).
Don’t give up!!
Good luck,
Del []wil..
Where about’s did you find these blocks?? what was the cost for them??
Were they strata or freehold title?
whats sort of yield are they?My wife and I are interested in doing the same sort of thing and just looking at getting a few pointers
Cheers
Calron the Alcamist
Turning things into gold is fun.
[email protected][]If you would like to construct the units you could get 100% finance based on the value of the end product only. No credit checks, tax returns etc needed. (Depending on the location). size doesn’t matter!
From what I have seen ,unit construction works out to be about $130,000 per unit.
Terry
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Really??? How do you go about doing this??? If I can find the land in the right location??
Whats the catch?
what sort of terms would a loan like that have??
Would you have to start paying b4 or after they’re built???Let me know how and I will come back to you when I find the where…
Email at the address below if you like..
I am learning something new every day….
Cheers
Calron the Alcamist
Turning things into gold is fun.
[email protected][]Hi Calron
There is a catch-The interest rates are high. This is meant to be short term finance only, so once the project is completed you could refinance with a lower rate. It will also depend on the location, anywhere on the east coast may be OK, but not country areas.
It works by getting 70% of the end value which is often enough to get 100% finance. based soley on valuation with no, credit checks, no financials etc (not even an application form).
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
There a number of different ways to find something like this. I suggest that the major effort is required in identifying the project. If the numbers stack up then most reputable brokers will be able to finance something like this.
I think you need to focus on finding the deal – this will be your bottleneck!
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Thanks for all of your advice…
Another thing that concerns me is finding a reputable builder. I am very green, and don’t want to get ripped off. How do I judge what is a reasonable price and what is ‘she looks blonde, I’ll add on 25% dumb tax’.
Other than location, what factors do I need to take into account when choosing land?
Thanks again,
VictoriaReason can answer questions,but imagination has to ask them. — Ralph Gerard
Hi Victoria,
I am also keen to head down this path, it seems a lot more challenging and hopefully potentially rewarding than buy and hold.
I’m doing a course soon – where do you live, I have come across a few good developers who may be able to help.
[
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MelHi Mel,
I live on the North Side of Brisbane. Not sure if I want to look at Bris, or some of the smaller satalite towns… Ipswich, Gympie…
Regards,
Victoria
[email protected]Reason can answer questions,but imagination has to ask them. — Ralph Gerard
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