Provisional sum increases and finance

Discussion in 'Development' started by NickWCBA, 17th Jun, 2022.

Join Australia's most dynamic and respected property investment community
Tags:
  1. NickWCBA

    NickWCBA Well-Known Member

    Joined:
    29th May, 2019
    Posts:
    341
    Location:
    Australia
    Hi all,

    Like many on here I’m being slammed with variations to the contract price on the provisional sums. The development site has slab down for the 4 townhouses. The total variations on provisional sums now at 115k.
    I’d be hitting very high numbers on my DTI ratio.
    Wondering what is the best way to go about increasing finance. Broker is suggesting a second mortgage on another property which obviously comes with higher rates.
    Are there any options I haven’t thought of?
    How have others developers dealt with this scenario?

    Many thanks in advance.
     
    Last edited: 17th Jun, 2022
    NickWCBA, 17th Jun, 2022
    #1