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Servicing a Construction Loan

Discussion in 'Development' started by Arnel, 4th Jul, 2015.

  1. Arnel

    Arnel Well-Known Member

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    Perth
    Hi everyone,

    Can someone explain how lenders calculate your capacity (serviceability) to borrow for a construction loan?

    Would it be the same as a normal mortgage?

    thanks :)

    Arnel
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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  3. Arnel

    Arnel Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
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    Location:
    Perth
    Oh ok, thanks @James Bond

    Follow up question to that. In order to service 1 million dollar loan PP 275k empty block and build 750.

    What would your income have to be.

    I have a proposal to go 50:50 in twelve apartments that have DA Already.

    pp 550
    Build 785sqm at 1900sqm.. 1.5mill
    Plus other costs and buffer

    I was going to bring in s few friends of mine on my side, splitting my share of th 50% into three.

    How would we step this up?

    The site will be secured by s company that we both have 50:50 stakes in (each have a trust).

    Note: have signed for 5 units to be rented to NRAS for 50,000 per annum. Don't know if that make a difference
     
    Last edited: 4th Jul, 2015
  4. Be Developer

    Be Developer Property Developer Business Member

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  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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