Residential -2 titles. Plans for 6 townhouses

Discussion in 'Development' started by Simmon, 13th Aug, 2019.

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  1. Simmon

    Simmon New Member

    Joined:
    13th Aug, 2019
    Posts:
    1
    Location:
    Melbourne
    We have two blocks side-by-side. some 1,320m in total
    ~640m + ~670m.

    3 townhouses on each.
    front pair with separate driveways, the remaining 4 with a shared drive.

    I see that Residential loans for multi-unit developments up to 4units (on a title).
    Q) does this mean I can do half of our plans on a residential loan? + driveway.
    with the remaining 3 done later on a different loan?
     
    Simmon, 13th Aug, 2019
    #1
  2. Eleven

    Eleven Well-Known Member

    Joined:
    27th Feb, 2016
    Posts:
    49
    Location:
    Melbourne
    Possible. But, if you subdivide them before you start building. However. I'm no loans expert. Best you post on lending sub section. Plenty of brokers available there.
     
    Eleven, 13th Aug, 2019
    #2
  3. Tufan Chakir

    Tufan Chakir Well-Known Member

    Joined:
    18th Aug, 2016
    Posts:
    877
    Location:
    Victoria, Australia
    If your design/layout means that all the facilities and services associated with the development are contained on one title then you could do. If the sites are not kept completely separate, ie driveway over the common boundary for example, your planning permit will require consolidation/resubdivision. You can only treat them as separate blocks if they really are separated.
    Alternatively obtain your planning permit (include subdivision), create the individual titles and develop as you need to
     
    Tufan Chakir, 14th Aug, 2019
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    3 units on one title is possible with a few lenders on resi terms, 6 is a no go and is commercial

    One thing to keep in mind is that " in one line" vals will have a decent haircut of between 15 to 25 of end value, almost as a standing order with most valuers, since

    Here is a recent example on a duplex pair resulting in a 50 k LMI premium :(

    If you are sharing a driveway, might be hard to do it as 3 and 3



    Ta

    rolf



    PRIMARY "HYPOTHETICAL SUBDIVISION" APPROACH:
    The market value for the units is :
    Townhouse 1 $1,250,000
    Townhouse 2 $1,250,000
    Gross Realisation $2,500,000
    Less GST $227,273
    Selling costs 2.2% $55,000
    Net realisation $2,217,727
    Less profit and risk 7% $145,085
    Less holding, interest
    and subdivision costs $55,180
    Less acquisition costs $121,048
    VALUATION $1,896,415
    ADOPT $1,900,000
     
    Rolf Latham, 14th Aug, 2019
    #4
    willair likes this.