Finance for Five X Townhouse Development

Discussion in 'Loans & Mortgage Brokers' started by klabat, 12th May, 2016.

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  1. klabat

    klabat Well-Known Member

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    Are there any other lenders outside the four banks and non apra lenders that could help?
     
    klabat, 14th May, 2016
    #21
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    not my experience as at today

    ta
    rolf
     
    Rolf Latham, 15th May, 2016
    #22
  3. 380

    380 Well-Known Member

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    Bankwest (maybe....????)
     
    380, 15th May, 2016
    #23
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Ta - I thought that was the case but never hurts to check re NAB.
     
    Westminster, 15th May, 2016
    #24
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  5. Oshawott

    Oshawott Well-Known Member

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    Do you get better rates/less hoops to jump thru if your lvr is lower? I.e safer for lender

    For example you are borrowing just 40% of end value.
     
    Oshawott, 15th May, 2016
    #25
  6. Cactus

    Cactus Well-Known Member

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    Not necessarily rate can be higher as your loan amount might be in a lower threshold.
     
    Cactus, 15th May, 2016
    #26
  7. undercover

    undercover Active Member

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    That is not going to help the OP with obtaining finance thou, that is purely a control on what can be developed on the land.

    The banks and purchasers need a title, which can only be released if you take out a S.173.

    You still have to develop in accordance with the planning permit and cant occupy the dwelling until all works as per the permit have been completed.
     
    undercover, 16th May, 2016
    #27
  8. Cactus

    Cactus Well-Known Member

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    That's not correct. I have obtained subdivision titles without S173 by doing as I have suggested.
     
    Cactus, 16th May, 2016
    #28
  9. undercover

    undercover Active Member

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    A restriction on title is called a S.173. What are you talking about exactly?
     
    undercover, 17th May, 2016
    #29
  10. Cactus

    Cactus Well-Known Member

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    I am talking about exactly what I said, re read the posts.


    A S173 agreement is an agreement registered on title. It is one mechanism to doing what you have suggested. Another mechanism is as I have suggested a restriction on the plan of subdivision which then becomes a restriction on the title plan. Another mechanism is a memorandum of common provisions.
     
    Cactus, 17th May, 2016
    #30
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  11. Connor

    Connor Well-Known Member

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    Great advice right there! Separate titles, therefore pretty much falls right into resi finance guidelines. You'll now have most mainstream lenders look at this type of scenario.

    I've used S173 agreements previously but this is a great alternative. I'll keep this in mind if needed :)
     
    Connor, 18th May, 2016
    #31
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