Hi Guys, How easy it is to spend a day looking at this forum!
I would really appreciate your help and advice. I am a beginner investor with three IP's in my own name.
My husband and I are interested in a large block of land with a house which would suit a buy, reno, build, subdivide and sell. Likely build two dwellings.
We would buy this property as our PPR and utilise benefits as FHO in closing cost savings. However we can only afford a cash deposit for the property and closing costs. We can have a 90% loan with no LMI through CBA as I am a Doctor.
Renovation for PPOR will be done through personal loan or savings as we are planning on doing this over 18 months. We currently plan on selling all for cash gain.
1. To build, I understand we can get a loan based on the end anticipated value and so potentially not needing a cash deposit for this? Is this correct? Is this generally possible through the big banks or through other "niche" lenders?
2. Can this cover the costs for subdivision also?
3. Generally how much more are the interest rates for construction loans vs personal loans?
4. Once purchased the property in our own names, can the subdivision and/or construction be done through a company or trust.
Our aim would be for asset protection and minimizing CGT when selling project.
Many thanks for the information.
Fi
I would really appreciate your help and advice. I am a beginner investor with three IP's in my own name.
My husband and I are interested in a large block of land with a house which would suit a buy, reno, build, subdivide and sell. Likely build two dwellings.
We would buy this property as our PPR and utilise benefits as FHO in closing cost savings. However we can only afford a cash deposit for the property and closing costs. We can have a 90% loan with no LMI through CBA as I am a Doctor.
Renovation for PPOR will be done through personal loan or savings as we are planning on doing this over 18 months. We currently plan on selling all for cash gain.
1. To build, I understand we can get a loan based on the end anticipated value and so potentially not needing a cash deposit for this? Is this correct? Is this generally possible through the big banks or through other "niche" lenders?
2. Can this cover the costs for subdivision also?
3. Generally how much more are the interest rates for construction loans vs personal loans?
4. Once purchased the property in our own names, can the subdivision and/or construction be done through a company or trust.
Our aim would be for asset protection and minimizing CGT when selling project.
Many thanks for the information.
Fi