Calling finance pro's

[Blacky]

Hi all SS's

Are there any finance "Pro's" here with experiance with the Perth property market willing to have a look at my situation which is slightly outside the square.

Or any recomendations.

In short:
3 house construction (3 seperate titles) all council approved.
Signed building contract in place (though finance expiry date has now lapsed so some cost variation might be required).
Current value $900k
Current debt $565k
On completoin val $2,340k (licenced bank val)
LVR on completion 75%

Complications
I work overseas and earn tax free USD (so yes current exchange rates are killing me ). All other debt is for investments, and all other income is from rental properties. 1 property is owned jointly with my sister.
St George Bank approved the loan early this year, however, included some untenable conditions.
Servicablity on completion is tight from the banks points of view, depending on how they discount rent/USD income/interest rates.

Depending on the above calcualtions total (after tax) income is ~$225k/pa servicing on completion is about $180k (IO)

Any suggestions/recomendations are warmly welcomed.

Thanks & Regards
Black Dog

 

[StuartW]

Does the $225k include rental income + your tax-free USD income? If not, what are these amounts?

If so, this looks too tight with only a $45k surplus to cover living expenses and potential interest rate increases.

 

[Rolf Latham]

.
St George Bank approved the loan early this year, however, included some untenable conditions.

Hiya

Just so we can help u here, what sort of conditions ? Rumpelstlikins like ?

ta
rolf

 

[Blacky]

Yep - includes all income.
I have calculated interest at 8.33% or 1.83% above my current rate.

I forgot to point out that I have no living expenses. No car, no PPOR, no phone/power/rent/food etc. My company pays all my living costs - the only thing I need to trump up for is my holidays and entertainment. .
Plus I am a shallow individual with no wife or children
When I return to oz I stay with the parents (actually I normally couch bash at friends places - but a bank doesnt need to know that )

The conditions were based around the timing of the drawdowns. I have put in about $400k of personal funds (which includes the deposit to purchase the block in the first place) and have paid all connection/council works/building designer etc from my own funds. I have also pre-paid my construction manager for the build.
However the SGB would only fund 75% of the drawdowns up to a limit of 75% on completion value. I dont have 25% cash available to pay the builder. I need the bank to pay 100% of the building contract, I will fund interest and any over runs from my own reserves . Their LVR is safe throughout given the current low LVR (in my opinion).

Still interested Rolf?

Cheers
Blacky

 

[Rolf Latham]

u might want to look at a lender that has a more friendly servicing model,ASSUMING the 75 % is related to servicing and income and not deemed equity position

Few lenders will do end value construction in any case.

ta
rolf'

 

[Marty McDonald]

Hi Blacky,

Whats the building contract amount?

Marty
Mortgage Experts Online
www.mortgageexpertsonline.com.au

 

[Blacky]

Contract amount is $1,195,000

 

[Marty McDonald]

Blackie,

100% doesn't look doable to me.
If you get a lender to lend on
end value they will only go to max
say 70% of gross realization which
is say $1638k, not enough. If you go hard
costs type lender max is say 80% of land
value + construction = $1676k again not
enough. Sorry.

 

[Rolf Latham]

Hiya

Dumb q, and would be unusual, do you have your 3 separate titles already ?

ta
rolf

 

[Blacky]

Yes, I have 3 seperate titles in my hand (well, the bank has them actually - but you get my drift).

 

[Rolf Latham]

do u have the option to split the builds ?

say 2 now one later ?

ta
rolf

 

[Blacky]

Hi Rolf
Not really, as the construction price has been set around the efficiencies created by doing all 3 at once. The builder will however give me three seperate contracts if need be, provided that all 3 are built at the same time.

Cheers.