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?
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New-Build Residential Investment Property - Current Financing Environment?
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Originally posted by brokerman View Post90% no issue subject to servicing etc.
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?
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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
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Originally posted by brokerman View PostAll good! Let me know if I can help further
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?
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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
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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
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