Hi all, I am new here but have enjoyed reading quite a few threads but its time to post my first one. So....where to start..... VERY long story short, my fiancee and I have purchased 17 acres in the North of Melbourne with 15 acres being zoned Green Wedge and 2 acres being zoned Low Density Residential. The idea is to subdivide the LDR into 3 x 2500m2 blocks to sell and keep the Green Wedge land to build on ourselves. We took a 9 month settlement to give us time to save up any extra funds we may need and also to give us time to get the subdivision approved by council. My company has many clients who subdivide etc themselves so I am lucky to have a better understanding than most of council DCPs, requirements etc. So....the agent from the start has been and continues to be...useless. Everything he told us has been wrong. The owners have been just as bad, providing the agent with quite a few innacuracies that will cost us tens of thousands of $. Therfore, my sympathy for either of them isnt that high. Because of this however, and after many many hours of due dilligence, we will profit. We had the land valued as a whole a week after purchase at $300,000 more than the purchase price and then individually as 4 blocks once subdivided at just under $1,200,000 above the purchase price. So, with that valuation in hand I thought banks would be falling at our feet to lend us $ to buy the block based on the valuation price. How wrong I was. So far the only lender willing to lend based on the valuation wants a $20k set up fee and 2.5% per month. Yes thats per month, not per annum! Every other lender says they will only lend on the purchase price. This was my first issue of contempt. Our situaiton is highly different to most yet no lender will take our purchase on face value whereby a price was paid in August and 9 months later at settlement the valuation will be ALOT more than the price it was purchased for. No lender wants to hear that actually got a bargain. I have a friend who is a branch manager at CBA and we will probably apply through them, our income is enough on paper to keep them happy as far a land and future construction loan is concerned, we've paid 5% deposit, we will have enough saved to cover the stamp duty and another 4% deposit. I am concerned though that the LMI company may reject the loan, no real sense as to why, just have that feeling. We will also still need to borrow a further approx. $200,000 to cover the subdivision costs. So, are there any lenders out there who would be willing to lend us on the fact that the valuation of the land is actually not what we paid for it. The valuation may in fact go up by a further $300,000 as we found out we can subdivide 3 blocks not 2 (when the land was valued we only assumed 2). Ideally we would wan to borrow the purchase price plus $200,000 more to cover subdivision costs and once subdivided we will have 4 titled blocks in total worth just under $2,000,000. Any suggestions/advice/powerball winners looking to invest please?