Hello All
I have a residential property that I now know is zoned for Terrace and Apartment building. I have been to an architect and he has showed me that I can build 6 terrace houses 3 levels each with single garage, 3 bedrooms, 2 bathrooms and each would generate 600 rental income per week. I approached a loan broker and he explained that building more that 2 properties on a site is considered a commercial loan and therefore the loan term is 15 years max.
He explained that I will need to pay it off in 15 years. Is this correct? If so then I cant afford to build this I guess. I can pay $2500 every fortnight against the loan but this according to him will mean I can pay it off just on time. Which will be very tight and said is there anybody that can support me if I fall behind in loan. I dont think I can rely on anybody to back me up. Is there anyway I can have a longer term? Should I build 3 houses and move the current one to front or back of the site so that I can build another 3 in future and get rid of the old one.
I need some really guidance here please as I dont believe I will have this opportunity again in my lifetime and therefore dont want to mess this up. Your feedback will be appreciated. thanks.
I have a residential property that I now know is zoned for Terrace and Apartment building. I have been to an architect and he has showed me that I can build 6 terrace houses 3 levels each with single garage, 3 bedrooms, 2 bathrooms and each would generate 600 rental income per week. I approached a loan broker and he explained that building more that 2 properties on a site is considered a commercial loan and therefore the loan term is 15 years max.
He explained that I will need to pay it off in 15 years. Is this correct? If so then I cant afford to build this I guess. I can pay $2500 every fortnight against the loan but this according to him will mean I can pay it off just on time. Which will be very tight and said is there anybody that can support me if I fall behind in loan. I dont think I can rely on anybody to back me up. Is there anyway I can have a longer term? Should I build 3 houses and move the current one to front or back of the site so that I can build another 3 in future and get rid of the old one.
I need some really guidance here please as I dont believe I will have this opportunity again in my lifetime and therefore dont want to mess this up. Your feedback will be appreciated. thanks.
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