Equity release for subdivision/construction.

[albanga]

Hey Brokers,
Keen to get your advice how you would tackle this one.
Property value - 650k, Loan - 430. Useable equity - 90k.

I need funds to subdivide my block which i am sure unsure of costs due to some issues but allowing 40k.
After subdivision I will likely attempt to sell the vacant block and if I cannot get the price I am seeking may likely take on the build myself.

The catch being I am with bankwest and they may not be ideal for construction.
So I am thinking get a LOC for the full 90k and use what is required for the subdivision.
Then if I go down the road of a build the remaining 50k can be used towards the deposit on the construction loan?

Note - I do not plan to hold if I build so contaminating loans is not a concern.

 

[Marty McDonald]

Yeah sounds reasonable. Cash out then subdivide then sell or reassess for build.

 

[Mick C]

Bankwest is fantastic for construction - esp the 4 ( done under resi term and rate)

Even the mid 9-10 units is ok with their comm team...good LVR and decent rate with low fees.

 

[Terry_w]

Bankwest is fantastic for construction - esp the 4 ( done under resi term and rate)

Even the mid 9-10 units is ok with their comm team...good LVR and decent rate with low fees.

Yes I agree with Mick and was going to say the same.

 

[albanga]

Thanks all, that may make life a little easier knowing that.
I have just read a number of non favorable comments from brokers on here regarding Bankwest so just incorrectly assumed they may not be ideal for this situation.

 

[Mick C]

Thanks all, that may make life a little easier knowing that.
I have just read a number of non favorable comments from brokers on here regarding Bankwest so just incorrectly assumed they may not be ideal for this situation.

If ppl asked me abt bankwest processing speed and servicing etc..i would say it's bloody *** esp with LMI haahaha

But for your question on development, it fits.

So every situation is unique and every bank fits differently for diff scenario/situation.