Hi everyone,
I’m hoping for a bit of enlightenment on how banks look upon borrowing for the purchase of unfinished houses and how the evaluation process is handled in these situations.
ThanksIt is incumbent on the financier to ensure they are protecting their shareholders from any unnecessary risk. This means they may lend to you if you can show how their risk is mitigated.
I have purchased unfinished properties, but the process is not simple. There needs to be a professional analysis of the status of the building and all of the permits and insurances that go with it. In my opinion it needs to be a real bargain to make it worthwhile.
Christian is correct however there are other factors to consider.
It will boil down to the overall lvr and your Credit score.
Some lenders will run off the purchase contract others will want anything from a driveby or computer produced val to a full valuation by a Professional valuer.
Too many variable to give you a definate answer.
Richard Taylor | Australia's leading private lender
Thanks Christian and Richard, you have both been very helpful and even though it seems like it was a bit of a ‘how long is a piece of string’ kind of question it has given me a place to start.
Thanks again
ChrisWhat you need is a handyman who specializes in repairs of all types.
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