Can any of the brokers advise which lenders might provide loans for small developments (eg reno, subdivide, build duplex) that have:
Residential rates (competitive – not “walk in off the street with no expectations” rates)
80% LVR
Tentative value on completion basis, rather than land cost plus build cost.I’ve heard they exist, but keep being referred to commercial lenders.
Any help appreciated.
Regards
WakeHi Wake
What do you mean by 80% LVR. 80% of what GR ?
How many units in the subdivision. How small is small.
Many deals are done at residential rates it just depends on the size and experience of the person doing the development.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Richard
Small, as in subdivide and build a duplex.
We are looking for 80% of the tentative value on completion, which is greater than 80% of the land plus build costs. The point is to be able to stretch our equity further.
Regards
WakeHi Wake
Ok I can think of a few lenders off the top of my head that would do that. I guess one thing is getting the valuer to agree with your GR.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi there,
I am working on small development of my own in Hobart at the moment. Three villas.
We got a low doc resi loan, 7.2% for the development from a company by the name of Firstmac Mortgage Management. 1800 651 898 (Brisbane). They will do a low doc loan for development for up to 4 dwellings on any site.
David
Thanks for the info, David. Good luck with your development.
Wake
Are you wanting to borrow over 95% of the land plus building costs? If so that may be why you are getting referred to commercial lenders. Suncorp Metway will look at the end value at residential rates and there are also many other lenders that will do the same but not many of them will go over 95% of land plus building costs regardless of the end value so perhaps this is where you are coming unstuck.
Do you have equity in another property that you could cross-collaterallise into the finance deal?
Get a broker to do some shopping around for you. Most brokers do not charge brokerage fees so hopefully it wont cost you anything to get someone else to do the homework for you.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]
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