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  1. #1
    Join Date
    Dec 2009
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    Tauranga
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    Default New-Build Residential Investment Property - Current Financing Environment?

    Has anybody recently gained finance for new build residential investment property? If so, what lenders are currently in the space and what LVR's are people achieving?

  2. #2
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    Aug 2009
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    All of New Zealand
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    Default

    90% no issue subject to servicing etc.
    www.ilender.co.nz
    Financial Paramedics

  3. #3
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    Dec 2009
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    Tauranga
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    Default

    Quote Originally Posted by brokerman View Post
    90% no issue subject to servicing etc.
    Thanks for the reply.

    How do they treat sites with multiple household units? I've got a large site that has one dwelling at present, but under the new district plan it could potentially suit an additional 2, whilst all remaining on the same title. Subdivision is possible but wont help cashflow so the multiple unit deal would be option A, at least initially.

    Are they able to do 90% on the new construction only, or do they look at the fact there is already a dwelling on site and apply 65% terms?

  4. #4
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    All of New Zealand
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    Default

    The 90% is on a standalone property only so not multiple on one title. Methinks you back to 65% for these.
    www.ilender.co.nz
    Financial Paramedics

  5. #5
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    Dec 2009
    Location
    Tauranga
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    Default

    Bummer....I'll keep looking at options. It still stacks up, but a 90% lend and keeping the R/C balance healthy is attractive. Thanks

  6. #6
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    Aug 2009
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    Default

    All good! Let me know if I can help further
    www.ilender.co.nz
    Financial Paramedics

  7. #7
    Join Date
    Mar 2009
    Posts
    147

    Default

    Quote Originally Posted by brokerman View Post
    All good! Let me know if I can help further
    I hope it's not rude of me to chime in here, but, since you're clearly in the finance game...
    I'm looking at a residential rental new build as well. I may be able to get the section behind my place for a very good price, as it's in an area which isn't worth much to anyone else but I've got enough land to realign boundaries and subdivide that back section. The current owner bought it assuming he could subdivide but has since discovered he can't without getting hold of some of my land, which I won't sell to him, so he's open to selling the section.
    Anyways, if I were to acquire that section and subdivide it with cash, creating two clear titled sections unencumbered, worth around $220K each and I wanted to build one dwelling on each for about $240K per dwelling do you think you could get the finance for me (480K total borrowings) with no deposit?

  8. #8
    Join Date
    Aug 2009
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    All of New Zealand
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    Default

    We could use the equity as deposit so no cash going in towards the build. The choice of lender would depend on what you looking to do once built, sell on or hold. Hope that helps!
    www.ilender.co.nz
    Financial Paramedics

  9. #9
    Join Date
    Mar 2008
    Location
    Auckland Wide
    Posts
    1,244

    Default

    Realistically 80%, as always buying off plans need to be real. I wouldnt let any of my clients buy something with a 2 year sunset clause if I getting their loan approved by a whisker thin margin. Rules can change, the banks approve for 6 months to 12 months (for the right type of structured turn key). They literally dont give a s**t about best intentions of the developer or buyer when they signed.
    Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
    My Website
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