getting around commercial lending
- Thread starter Oshawott
- Start date
If they were strata titled then you could get finance at separate banks. Not common to get strata done upfron tho.
Think about the tax implications of using cash directly as well.
The council is not going to allow subdivision prior to construction of multi unit dwellings.
Also if application is strong and LVR is 80% or under then RAMS will consider 5 unit construction development under residential lending.
Anything over 5 and its definitely commercial.
Also if application is strong and LVR is 80% or under then RAMS will consider 5 unit construction development under residential lending.
Anything over 5 and its definitely commercial.
Are you talking grouped dwellings, ie villas/townhouses or multi units, ie apartments
For grouped dwellings you can do green title first then yes you could split them up however it would be overkill to do all 5 or 6. You would just do 2 splits so that there is 2-3 on one title and 3 on the other then split further at end.
However it means extra costs and you need to do two applications for DA. This is better than the 5 or 6 DAs you'd need to do with your scenario though
It's quite possible the extra costs would be the same as going commercial.
Commercial is not that bad. It's quite friendly if you have a strong enough case to not do presales.
For grouped dwellings you can do green title first then yes you could split them up however it would be overkill to do all 5 or 6. You would just do 2 splits so that there is 2-3 on one title and 3 on the other then split further at end.
However it means extra costs and you need to do two applications for DA. This is better than the 5 or 6 DAs you'd need to do with your scenario though
It's quite possible the extra costs would be the same as going commercial.
Commercial is not that bad. It's quite friendly if you have a strong enough case to not do presales.
Something else you may want to consider, and I definitely don't have the wording right, but I think if the loan pushes your name/entity/company/trust over the $3 million lending mark all loans from then on are commercial.
I think the fix for this is for the loan to become residential on completion but confirmation of this would be helpful from someone more knowledgeable.
I think the fix for this is for the loan to become residential on completion but confirmation of this would be helpful from someone more knowledgeable.
yes im actually referring to villa/townhomes instead of apartments. sorry for confusion.
don't wanna do presales at all. wanna keep all the babies
It's every common, Terry. Developers focussing on saving $10k rather than focussing on the bigger picture.
A recall a budding developer come to me wanting free advice. I told him $500 for a consult and he declined. Moments earlier he had told me he expected to make $500k profit.
This is one of the most puzzling things. We even see it on SS where some posters who have been here for years and surely know better will come in in a panic trying to fix a structure or tax issue that could be been easily sorted out prior with a bit of planning and specific advice.
A recall a budding developer come to me wanting free advice. I told him $500 for a consult and he declined. Moments earlier he had told me he expected to make $500k profit.
How dare you ask for money
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