If i am to purchase land and develop a duplex with a construction loan, how is the final loan set up against both properties?
Assuming land value $300k / build $300k, what i am trying to ascertain is will the final loan be split between both properties or will it be against only one or will it be set up as cross securitised? I am trying to do the numbers on either keeping both as investment, sell one & keep one or sell both.
$300k for build??
does it inc Site and other cost, it can add up to around $100K
I was using a round figure only, these are not by any means the actual costs.
PFranky
The end loan can always be restructured when you decide what you want to do with the property (that is not to say you sell one side of the duplex but then load the investment property which you retain).
In regards to the loan going forward it would normally be set up as a land loan initially and then a construction loan during the building stage. Both loans could be merged on completion.
Just structure it correctly and you will be good to go.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Whether the DA staging is subdivide and then build or build and then subdivide – you will be able to restructure the loan so as long as you don't fix the your loans. Thus you need to keep them variable.
Your build cost will definitely be more than $300k. Where are you building? Have you got DA yet?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Also make sure the lender is ok for you to build 2 dwellings on the title based on your LVR. For example, ANZ does max 70% LVR on 2 dwellings on a title.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
You must be logged in to reply to this topic. If you don't have an account, you can register here.
