It all depends. Just need to tread carefully.
Development Finance Pitfalls for the first timer.....
- Thread starter Jtkumnick
- Start date
It all depends. Just need to tread carefully.
ok, like i said when i have more definate numbers etc i will come back to you to see what you can do, but im enjoying learning as much as i can from other people in this area where i dont have experience....
in my situation then- its probably better to borrow 80% against the property (house on acreage) that ISNT getting developed- then using those funds to do what i like on the dev site....?
Probably would be ideal if possible but you can still get a mortgage on the development property too.
Agree with Aaron there are many variables.
You mentioned earlier you are selling the property into Trust so that you family could come on board with serviceability yet you want to front up your PPOR and use it to kick in some extra cash.
Not sure your Solicitor would suggest this unless it is covered off legally.
There are many ways to fund the deal it is just a matter of finding what works at the most competitive cost V security / flexibility etc.
You mentioned earlier you are selling the property into Trust so that you family could come on board with serviceability yet you want to front up your PPOR and use it to kick in some extra cash.
Not sure your Solicitor would suggest this unless it is covered off legally.
There are many ways to fund the deal it is just a matter of finding what works at the most competitive cost V security / flexibility etc.
Thanks Richard, the trust is mainly for tax/capital gain issues, im kicking ideas around that give the bank fair security, but not excessive security. Ive got a best case scenario in my head and i guess it just comes down to how close to that the financier will come so we can both be happy.....
