fxdaemonParticipant@fxdaemonJoin Date: 2013Post Count: 114
I am in the stage of sourcing finance to fund a duplex project on a block I own and currently with an
old tenanted dwelling IP. The original property still has the original loan.
I am maxed out on servicing to access retail construction loan in my personal name/capacity. What other
options may be available out there?
The project is to build and hold as rental so on completion I will like to re-finance back into a retail
investment loan if servicing improves then. If not, I will consider selling one to lower the LVR down
in order for me to get the best re-finance deal then.
Any advice and/or experience to share is greatly appreciated.
FXDCorey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
Are you sure you’re definitely maxed out with your borrowing capacity for a construction loan through ALL residential lenders? Some have strong niches which can allow you to borrow further than other lenders which may get this over the line.
If you truly are maxed out at this time, even post construction then you should be still unable to refinance the loan to a mainstream option as you’ve just piled further debt into the mix – which will outweigh any rent received in lenders calculators.
Adrian in our office is a bit of a wizard with these construction scenarios – feel free to give him a buzz and he should be able to definitively let you know if it’s possible to arrange any finance for your scenario or whether there are some alternatives should you make xyz changes.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,190
1. Make sure you are really maxed out.
2. Do what you can to improve serviceability.
3. Related party loan.
4. Transfer small amount ownership to someone who will help with servicing.