All Topics / Help Needed! / Property Development

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  • Profile photo of neek0laneek0la
    Member
    @neek0la
    Join Date: 2012
    Post Count: 17
    August 11, 2012 - 3:33 pm

    Im interested in buying a property out west of sydney (fairfield area) and building 2 duplexes on the property. Im a carpenter so i believe the cost to build would be substantially less considering i also have a fair few electricians, plumbers and concenters as very close friends. I still consider myself young, 27 so i was wondering if you guys could point me in the right direction.

    Would it be possible to get a loan from the bank for this sort of a project, considering i have about 30% of the predicted total amount saved (200k saved)?

    What are the laws with capital gains tax. Is there a way around it?

    Is there a way to find out if a property can be zoned for a duplex dwelling before purchasing.

    Any other tips or info from previous experience…. maybe something im missing?

    Thanks in advance

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271
    August 12, 2012 - 5:06 am

    Hi,

    I have personally gone down the duplex path and it has yielded some great results. I have done this in the Wenty area. 

    Just a few questions – do you currently have the DA and if so are you subdividing before building or building and then subdividing? Will it be torrens or strata titled? What is your current LVR and what is your LVR after construction? Are you planning to live in one of the properties or rent/sell both? Will you live in the property whilst you are planning the DA?

    Please note that if you are constructing the dwellings as 'owner builder' then lenders either have a restriction on the LVR and hence how much you can borrow and secondly some lenders do not even allow owner builder loans. 

    In terms of the zoning – jump onto the Fairfield council and download their DA guide. Also speak to the council's town planner. It is a free service but be warned that you need to be prepared for the meeting (usually they meet you for 10 minutes at a time).

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
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    Residential and Commercial Brokerage

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    August 12, 2012 - 6:31 am

    I have 2 owner builders deals from forum members on my desk at the moment and maximum lvr we could get was 80% so going to depend on the equity you have in the current property.

    Also 3 properties on the one initial Title will cause some lenders an issue.

    Still in saying this can think of 1 lender who could probably do both.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 3 posts - 1 through 3 (of 3 total)

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