I have only recently join up and impressed with the knowledge in here.
Im looking at a small development project to satrt my self. I want to build 4 townhouses in the canberra region (on the NSW side of the boarder), I have very limited capital. I know some of the following questions are lacking some detail but im only after advice and not definitive answeres.
Roughly what size block should i be looking for? I know this will differ from shire to shire
What are finance options for these sort of developments?
If i go to the bank with all the facts and figures what sort of answere can i expect?
If i want to sell each townhouse for $450,000+, what should is a good budget to set for each building?
Any information on what tax's, stamp duties i will have to consider when selling?
and any other information that i should know.As i said above im only in the pondering ideas stage at the moment. I know i will need to seek advice from an accountant and solicitor sometime.
cheers guys
Thanks for you timeHi James
Firstly welcome to the forum and I hope you enjoy your time with us.
I wont comment on the other points but merely the question of finance.
As it is your first development you would probably be looking at borrowing a maximum of 80% of land costs and 80% of construction costs meaning you would need to fund the other 20% plus soft costs not included.
When you get a little more experience under your belt you would probably obtain a gross realisation loan to maybe 65/70% of end value but of course the rate of interest will be higher and not your standard banking lender.
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
