Borrowing against sub division DA.

[Danieljk101]

Hi all.

We own a house in Chermside West that is sitting in the middle of a future splitter block. This means the house would be knocked down in the future and building 2 new homes. This is still about 5 years away till we do this.

In that time we would like to keep investing. A friend told me if you get the DA from council for the subdivision you can then get it re-valued and borrow more. It was valued at $600k not long ago. If it was valued as 2 seperate lots the land value would be around $750k.

Is this possible? It doesn't sound right to me but if it is possible it might be worth looking in to.

Thanks again.

 

[beachgurl]

I had a DA approved splitter at Chermside and the bank valued it as presently used. I was advised that reval wouldn't happen til the DA was sealed ready for titling.

A broker has told me since then that valuers are supposed to value according to proposed use if it has a DA or a dual lot but I haven't heard of anyone who's got a good Val back yet.

 

[albanga]

That doesn't sound right to me at all. How could a valuer value something that may not happen or could have a heap of potential issues?
A DA expires if not fulfilled in a set timeframe (2 years I believe)