Hi Everyone,
I'm looking to build my duplex this year after a hell of a year last year. Theirs still some hurdles to overcome but I'd like to put forward my plan and get idea's of whether its possible to get green light from the banks.
Current Mort - $400k
Current Value - $530k
total Build cost - $550k
So from my calcs - my total project cost including absolutely everything will be 950k.
Income from the project when sold will be 630k x 2 = 1.26mil
Deal
Income - 1,260,000
Costs - 950,000
Profit = 310,000
Total cash or equity
Private funds - 250,000
current equity - 130,000
Total C/E = 380,000
Mortgage
C/E 380,000 less
Costs 950,000
= 570,000 mortgage needed ?
These numbers are my cash/ equity position and the funds needed to complete the project.
Return on project is 24%+ that looks good.
With the cash and equity I'm looking at an End Val loan of 45%.
Now to throw a spanner in the works..... I have quite high personal debt from carrying a huge investment loss last year. I also now have a Judgment marked on my veda credit file for a court case I lost against a builder.
Although not a simple arrangement?? Brokers what are the ins and outs of this deal.
Is the high cash/equity enough to sway the banks or is the judgement on the my credit file to much to work past?
would an offplan sale of 600k appease the bank that only has a lend of $570k?
Thanks in advance for the feedback.
Cheers
Andrew
I'm looking to build my duplex this year after a hell of a year last year. Theirs still some hurdles to overcome but I'd like to put forward my plan and get idea's of whether its possible to get green light from the banks.
Current Mort - $400k
Current Value - $530k
total Build cost - $550k
So from my calcs - my total project cost including absolutely everything will be 950k.
Income from the project when sold will be 630k x 2 = 1.26mil
Deal
Income - 1,260,000
Costs - 950,000
Profit = 310,000
Total cash or equity
Private funds - 250,000
current equity - 130,000
Total C/E = 380,000
Mortgage
C/E 380,000 less
Costs 950,000
= 570,000 mortgage needed ?
These numbers are my cash/ equity position and the funds needed to complete the project.
Return on project is 24%+ that looks good.
With the cash and equity I'm looking at an End Val loan of 45%.
Now to throw a spanner in the works..... I have quite high personal debt from carrying a huge investment loss last year. I also now have a Judgment marked on my veda credit file for a court case I lost against a builder.
Although not a simple arrangement?? Brokers what are the ins and outs of this deal.
Is the high cash/equity enough to sway the banks or is the judgement on the my credit file to much to work past?
would an offplan sale of 600k appease the bank that only has a lend of $570k?
Thanks in advance for the feedback.
Cheers
Andrew