Three double story unit construction loan

Hi experts,
I am doing my first development project. I already have gone through all the process like I got approved plan and permit for three double story town house. Got all the services NBN, Water, electricity approved and subdivision also got done before the construction. But I got stuck in last part of development which is finance for construction.
Is anyone can suggest the way to get out from this situation?

Scenario
Construction cost $925K (Got a building contract)
Current Mortgage on land $575K
Need $1.5m to complete the project
Combined income with my partner is $100K from full time job and $60K from part time job with my partner.
Can get rental income around $45K for two units as One unit is for livi in and other two gonna be investment property.
I can contribute further $150K for construction so actual need is $1.5m - $150K = $1.35m

Dose it looks I can get finance approved with consideration of economic slowdown and current COVID19 situation?

 

I would say in this climate finance is pretty hard to obtain.
How much is your land worth ?
If you sold the units instead of holding what would get ?

 

100k combined income for a couple, sounds difficult to obtain.

Are the town houses attached or detached?

If detached could you finance one at a time for construction?

 

Land could be around $950K
Individual unit valuation got $610K to $635K each.
Thank you

 

End value will be $1.8M to $1.85m.
Already got 3 titles.

 

$100K from Full time job
$62K from part time job and
$46K potential rental income of 2 units
In total $208K.
Thanks

 

If the current land value is $950k and your construction is $925k then there is no profit in this project. That might be one of the reasons the bank is wary

I assume when you say you need to borrow $1.5m you are talking about rolling the land mortgage together with the construction mortgage?

If you have the 3 titles already it may be more favourable to a bank to separate it all out and have each deal stand on it's own.

But at the end of the day you may still not meet the serviceability requirements due to your income and other commitments - do you have other properties?

 

Yes it’s together construction and current mortgage on land.
My end value is around $1.8m and seeking $1.3m including current mortgage to finish the project. Can it be served on my $208k income?
Thanks

 

If it doesnt service straight up and you dont have any pre-sales then private finance might be the way to go.

Not sufficient information to make a valued judgement.

Cheers


Richard

 

Hi Guys,
in relation to above I spoke to one broker and apply for loan. Everything was going well bank agreed to lend money assessor had done serviceability at satisfactory level and sent to higher credit for full approval and another twist come by higher credit authority saying we can not accept one line valuation as it is $600000 each unit as it complete. Bank saying we need land and construction value separate. bank have requested to valuer but valuer is not ready to separate it.

My question is why Valuer can not separate value of land and construction even I have all three separate titles? can anyone clarify please?