Loaning off OTP Sales

Discussion in 'Loans & Mortgage Brokers' started by WhoDaresWins, 30th Dec, 2017.

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  1. WhoDaresWins

    WhoDaresWins Member

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    Say I had 3 townhouses that were sold off the plan to FHB/Investors, can the bank use that as security to lend for the purchase of my next project. (I own the current site unencumbered)

    Example

    TH1: Sold OTP $600,000
    TH2: Sold OTP $525,000
    TH3: Sold OTP $525,000

    Can I get a loan to buy another site for say 750-800k?
     
    WhoDaresWins, 30th Dec, 2017
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    if u own the place outeight AND the buyers havent lodged a caveat, the equity should be accessible under normal conditions

    ta

    rolf
     
    Rolf Latham, 30th Dec, 2017
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  3. WhoDaresWins

    WhoDaresWins Member

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    Thanks for your answer, I have one other question too,
    What about business loaning, as in I have $1m how can the lender give me more? Can they match my initial amount? Could I get 50,80,150%? This is for developing purposes.

    I spoke with ANZ and they said that their commercial lending starts at projects where the value is $10m and they will give you 70%, so you'd need $3m to start.
     
    WhoDaresWins, 30th Dec, 2017
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    The question doesn't really have an answer I'm afraid .

    Way more specific information required to provide some useful info

    Ta

    Rolf
     
    Rolf Latham, 31st Dec, 2017
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  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Do you mean you have developed 3 townhouses and sold them but not settled yet?

    Yes you could use that property as the security for a further loan - subject to the terms of your sale agreements with the purchasers and the banks. Also purchasers may lodge a caveat which would prevent mortgaging the property

    That is the theory - but in practice it may be difficult
     
    Terry_w, 31st Dec, 2017
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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    What is business loaning?
     
    Terry_w, 31st Dec, 2017
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