Finance Assistance for Property Development

Discussion in 'Loans & Mortgage Brokers' started by Heath, 2nd May, 2018.

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  1. Heath

    Heath New Member

    Joined:
    2nd May, 2018
    Posts:
    1
    Location:
    Vic
    Hi Guys,

    First time post!

    We're currently looking for some support on finance options for our 3 unit development.

    We currently have a property in melbourne around 900m2 with town planning in process to retain existing dwelling and add two additional units at rear of property.

    Based on market value I would suggest our loan is around 60-65% LVR. One of our issues is we have is we've had a number of additional costs for the development and other items which equates to est 60-70K which are across 3 different personal loans and we're concerned about serviceability.

    Property in Casey area of Melbourne, total expenses will be around 1.1mil around 1.4mil revenue conservatively.

    Ideally we want to refinance the single property now and consolidate all personal loans etc with the most appropriate lender however once town planning is approved (3 months) use the same lender to complete the construction.

    Is residential development still the best option here if so can I get some suggestions as to which banks would suit for this type of development? Currently we use AMP however they wont do this, A friend who also does some developments suggested BOQ?
    Has anyone used private lending or second tier lending to allow for quicker/easier finance options? Is that worth considering?

    We're also looking at potentially selling one or two of the properties off the plan, would that mean the new units would not require to go through servicebility? If so what actually do the banks need to provide funding for off the plan finance eg just a contract of sale etc?

    We've looked at a number of banks and it seems difficult to get all the stars to align, if there were any recommendations or a quality mortgage broker or a good bank that specalises in property development would like to hear any recommendations/feedback?


    Thanks all in advance!
    Heath
     
    Heath, 2nd May, 2018
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    2 things

    dont expect the one lender to fill all needs

    3 unit on on title build in the resi space comes down to less than half a dozen lenders, much less if you need an LVR > 80 %.

    NAB and their white labels are typically a good fit here

    ta
    rolf
     
    Rolf Latham, 2nd May, 2018
    #2
  3. Petros

    Petros Member

    Joined:
    5th May, 2018
    Posts:
    6
    Location:
    Sydney
    Heath,

    How are you faring with the approval and the prospect of any pre-sales?
    Still looking for development finance?

    Kind Regards
    Peter
     
    Petros, 12th Jun, 2018
    #3
  4. Financial Advisers AU

    Financial Advisers AU Member

    Joined:
    12th Jun, 2018
    Posts:
    6
    Location:
    Brisbane
    Hope everything went well!
     
    Financial Advisers AU, 25th Jun, 2018
    #4
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