How long do you have to wait? Do you mean until the house is completed? If so you would need to find that out from the builder.
You say the property is worth $530 now.
How much will the property be worth with the new house on it? i am assuming over $700K. The run down house went for $630K on our street not that long ago
Bank Just valued the property @ $530K. It's a run down house 50 odd yrs old so i am assuming house value is next to nothing.
What will be the cost of constructing the new place?
$250K + $10K ( Site Cost) + $10K ( Demolition) + $15K ( Driveway, Fencing etc) + 15K (contingency) = $300K
Basically the lender gets an "on completion" valuation done. .
say on completion the property will be worth $600k and you are borrowing 80%, then you have available funds of $480k less loan of $350k means $130k is available to fund the construction.
say on completion the property will be worth $750k and you are borrowing 80%, then you have available funds of $600k less loan of $350k means $250k is available to fund the construction.
In your case you want to borrow $250k to build. On top of the $350k existing debt that will bring your total debt to $600k, at 80% lend, the on completion value will need to be $750k for you to get the additional $250k at 80% LVR.
I trust this helps.
My question is what if the value does not come out to be $750K+. What are my options.
1. Enjoy what you have.
2. Pay LMI with a a higher LVR.
3. Save more money.
4. Consider selling and buying an established house.. it could be cheaper even with stamp duty.
PS: If you choose 1 or 2 .. get used to no sex from the wife due to her not being happy ... or just get divorced now..