Financing Granny Flat builds?

Hi,

I have a question for all the brokers, I'm sure this will be something many other Logan area investors will be interested in also.

I have some IP's I'm looking at building 'auxiliary units' on within the Logan city council area.
What are the options for finance on building these at the moment?

One has loan currently with ANZ at 85% LVR on purchase price, possibly go back to 80% depending on current Val.

What percentage of the build costs will I need to find in this kind of scenario, 20% of build or are there other options?

Thank you

 

Unfortunately ANZ is 70% max LVR for this style of thing. They call it restricted security. In terms of how much you need to put in it depends on the valuation ie combined loans not more no more than 70% of end value based on valuers opinion before the build.


Other lenders happy to do 90% all up...was 95 ;(

 

ANZ is the worst lender for dual occ construction as they only do 70% max LVR.

They can consider 80% if the loan services without the use of the GF income.

Its a shame because you have LMI credits up your sleeve w/ ANZ.

Why did you go with ANZ in the first place?

 

My Broker advised that Anz was a good option given my situation at the time. Probably also due to internal LMI assessment.

I also didn't plan on being able to build another dwelling on the site.

Any suggestions for alternate lenders?

 

Any lender (except ANZ) is ok but you need to drill down and see if there is anything that you need the lender to be able to do.

One key element may be the valuation so I dare say get your broker to narrow the most suitable list of lenders and then order a few upfront valuations with those lenders.