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  • Profile photo of Samantha McGlynnSamantha McGlynn
    Member
    @samantha-mcglynn
    Join Date: 2005
    Post Count: 12
    November 8, 2005 - 5:10 am

    Mortgage brokers.

    I want to purchase a 25 yr old 4 bed brick house on a large block of land. Already had the cautious go ahead that is correct zoning for subdivision into 3 lots. 1 x 500 and 2 x 580. I have cash available for the development costs, purchase costs and all other costs. (not purchase). How do I go about getting finance for the purchase price as is now.

    OR conversely

    I have 20$ deposit. How do I get a loan for all development costs and 80% purchase?

    Any ideas

    Sam

    P.S. I have my own house and other IP’s with one being a big cash flow negative drain at the moment. When prices are right this one sold will release me about $600 per month & $10000

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    November 8, 2005 - 5:28 am

    Speak to a broker who specialises in this sort of lending.

    I am sorry but there is not enough info on your post for anything more concrete than that.

    If you approach banks for your development project you may find it quite discouraging – this is where a good commercial broker will come into his own.

    Cheers,

    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913
    November 8, 2005 - 7:17 am

    Hi Sam,
    It seems you have a few options available to you,
    Option 1, borrow 100% against the purchase and use your current funds for the development.

    Option 2, access 20% and closing costs from equity in your current portfolio and borrow 80% secured against the new purchase,
    If you have equity this option would probably be more economical i.e. lower rates than 100% finance and no LMI.

    Option 3, same as option 2 but increase the equity loan to include development costs and park current funds/savings in an offset attached to PPR debt.
    I hope this helps, Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

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