All Topics / Value Adding / Construction loan question

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  • Profile photo of alexluualexluu
    Participant
    @alexluu
    Join Date: 2018
    Post Count: 0

    Hi all,

    Just need an broker opinion on my situation.

    I am a father in a family with 3 kids. Going to settle our 3rd IP in Tas.

    The IP is able to subivide into another lot and building up in the back. Builder quoted to build a 3br around 140m2 is $300k with drawing and other fees.

    currently we got 1.33 mil value of my 3 IP, and we owe $1 mil home loan.

    Question is how likely the bank happy to fund me the project. Providing the market price when the building finish is $450k (so $150k equity)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    To get a loan you would need to qualify in terms of serviceability and would generally need to keep lvr to 80% so it will depend on the income of the borrowers plus the LVR.

    Some lenders may also not like 2 properties on one title, but many do.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    In the main agree with Terry on servicing but number of provisions under NCCP where this is not required even in if buying in a personal name.

    Would need a lot more data but on the surface could be done.

    Cheers

     

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

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

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