Finance for land and duplex development

[strongy1986]

Morning

We are looking at buying a vacant block for around 130k

Then depending on finance doing a duplex dev

We would be using a kit home built by a builder so total costs will be around 270

So all up 400k

What is the best structure for this loan (we have enough for 20% deposit)

Would it be a bad idea to just buy the vacant land first and then get a construction loan later on - does it affect serviceability doing it in two loans rather than one?

Also how do you make an offer on a vacant block whilst trying to get a DA - what buying terms do you use and what process do you go through

Cheers

 

[Aaron_C]

Buying the vacant land first is OK but you don't have much of a choice given the amount of time lag between purchase and DA. After your DA just get a loan increase for the construction.