I own a property worth 450K with bank owed 330K
Over 1 year ago I purchased another property with 300K owing and now worth around 320K as I have subdivided and built a dwelling in the back now worth around 400K once complete
Id like to take the next step and purchase another property.
Am I better off holding onto my first property (not sure if the bank will give me finance) or to sell and focus on my next project.If you are in Melbourne id be happy to catch up in person.
Hi there
Any reason why you have to sell? Looks like you've got some equity available in the first property that you could possibly access to fund the deposit/costs on another property.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Im thinking in relation to building a future dwelling and sub divide the next project.
Id need cash to do that
I know the banks dont like financing building costs.
Who is the lender? and why are you not ordering an upfront valuation?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Banks love financing building costs. It's just not fun for the person borrowing money. Sometimes they can make you jump through loops of fire just for your construction loans. As long as you got a minimum of 20 percent of the construction loan for residential you should be ok. Or have equity in the land
Shahin: ill be checking with commonwealth bank this week. But based on my calculations 420K on property and 180K to build… ill be in debt big time which is why im contemplating selling
Wilko: my current project as owner builder the bank didnt want a bar of it. Might be different as if I use builder. Wonder how ill go if I do it myself again.
Well if your a licensed builder you should still be able to get finance up to 70 %.
and 60% at the lowest LVR if you were not.
Yes it is a lot easier to finance if you have a builder, building it.
Not ideal way to go but 80% would be doable as an owner builder.
In saying that check the State legislation to ensure how whether you are limited to the number of times you can O / B.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You mention that you have a house on the back of the place you subdivided but don't mention any debt against that do you have finance against that property? How much? When do you expect that to be complete?
Dustin McMahon
dustin@yourbroker
0430 110 304
Dear Bbasdg,
I believe you may have already taken your next step.
Just out of curiosity.
You have two property valued at (400+450) =850K total
Total loan (330+300)=660K
Total deposit needed (20% of total properties valued)=170K
The money available of next property= (850-660-170)=20K you could buy land up to 100K but will be left with no money to construction.
I believe you may have sold the second property or taken loan with LMI. Did I miss something.
Please inform what you ended up doing.
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