Brokers, would Banks view this type of construction any differently?

[Mamaof3]

http://accom.anu.edu.au/UAS/43.html

I know shipping containers have been a funny thing with banks especially when used as storage because of their portability etc and I haven't looked at them in a couple of years but I just came across this development (link above) by the Australian National University and it appears like they're designed such that its a permanent structure. Its just like a multi-unit development over several stories and doesn't look like its something that would be taken apart - just a more cost effective building solution.

So would the banks view this any differently to a apartment block built the traditional way? A recent development site came across my desk a few weeks back and the build cost essentially killed the deal (4 stories with ground level car parking). So if i'm able to create the same development using shipping containers, supposedly a much more cost effective method, I would want to make sure the banks would not have any issues with it.

Any experience or thoughts Brokers??

Thanks!

 

[Mick C]

Its fine...taken as a student accommodation.

As long as they have comparative sales in the area for simliar property; all good.

 

[Marty McDonald]

I am sceptical this would be a banks cup of tea. its fine for the ANU to do a project like this as they would no doubt not need finance and would have high level architects running the show.

 

[Mamaof3]

I wasn't thinking for student accommodation but for normal residential apartments....?

 

[Aaron_C]

Problem will be valuation of the completed project. It may comply with BCA etc but the test is whether it can be sold, and if so, for what price.

 

[Rolf Latham]

As with commercial warehouse conversions, if there is a market, the lenders may see it ok.

Forget anything > 80 % if you are lucky, though we have had whouse conversions in Sydney through at 90 %

ta
rolf

 

[mattnz]

I discussed non-conventional construction methods with an experienced developer. He advised that even if you can find an amaZing deal, the banks will use normal build costs in assessing the financing of the project.

Also, if you are planning 20-30sqm units, many councils won't allow them as they are so small and banks don't like financing them, certainly not at 80% lvr.