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Financing Termite Damage House

Discussion in 'Property Finance' started by Coastal, 14th Apr, 2016.

  1. Coastal

    Coastal Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    153
    Location:
    Brisbane
    Hi

    Would be easy to obtain finance on a termite infested house in CBD

    Basically it is a brick and tile home, but termites have gotten into the roof and into the beams. Looks like the whole roof will need to be replaced and the termites are in the walls, possibly work has to be done on the walls and property will need to be plastered again.

    Guesstimate work is $30000 for roof replacement and $30000 contingencies for wall work, plaster and other works

    Is it possible to obtain an 80% loan for land value?
     
  2. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    14th Jun, 2015
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    Location:
    Sydney & Adelaide
    If there is visible damage apparent to a valuer, then a contract of sale lender will likely be needed. 70-80%. Was discussing this with @Corey Batt just a few days ago for a client.
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    18th Jun, 2015
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    Location:
    Perth WA
    Yep there are lenders that will go off a CoS, so that's the best way around it.
     
  4. Coastal

    Coastal Well-Known Member

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    22nd Jun, 2015
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    Location:
    Brisbane
    I usually go through Comm Bank.
     
  5. tobe

    tobe Well-Known Member

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    Location:
    Melbourne
    another option is to show the lender you have the funds to make the property good, which may also involve a quote from a builder. Or only borrow a percentage of the land value rather than the improved value.
     
  6. Andrew H

    Andrew H Well-Known Member

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    4th Jul, 2015
    Posts:
    204
    Location:
    Cairns, QLD
    @Coastal Just had this issue 2 weeks ago personally biggest pain in the ass. All due to comments from the valuer. In heindsight i could have hidden the termite damage from the valuer to get it over the line. Or told the owners too. The comments then called for a building and pest which made matters worse.

    I wanted 89%. Luckily for me it was a reno + hold and rent. I had to go 70% home loan + 20% personal loan with aim of refinancing immediately after reno complete (2 months). If it wasnt such a good buy i would have walked.
     
    Last edited: 20th Apr, 2016