Hi,
I am thinking about doing a small sub division of splitting a property into two. Just to put it out there this is going to be my first project.
I have got builders license with me. Banks are hesitating to lend me more than 80 % LVR.My question is are there any more lenders who will be willing to give it a thought.
Thanks in advance for your reply
regards
Peter
lenders tend to shy away from owner builders. if you can show proof of your building skill or some history then it might give them more confidence in your skills.
there is a tendency for owner builders to attempt more elaborate construction designs, or to not document the designs accurately enough, resulting in building mistakes, or cost over runs that make the bank uneasy. where as when hiring a building the developer tends to have good detailed plans and a strong desire to get it all done properly.So yeah, get your design and plans all done properly and some history to show your skill and you might have some more luck.
Westpac are going above 80% for me but then it is all going to be done by commercial builders and it is my own PPOR.
thommo
get a relative involved, through a trustee maybe, and then you build for them.
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
Thanks for all the replies,
As suggested by illuminati I need to have water tight documentation, like design, quantity estimation etc. The other side of story is to get a relative involved through a trutee and let them employ me to construct their property.
I will kepp you guys posted with the developments, over the weekend I am going to have word with my relative who I think should not have a problem.
regards
Peter
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