Thank you all,
I would like to introduce some our current situation. We are in Brisbane. We just complete a 3x3bedroom townhouse development, the location is less than 10km from Brisbane CBD. The Occupancy Permit will be issued at the end of this week or early next week. This project is conducted by our family. The rental income from the 3townhuses can cover the total amount of interest fee from bank loan, property agent management fee and council fee. So we decide to keep them all, not sell them.
Our next project is to develop 6 units in a similar area, but my son doesn't want to join with us for the 6unit development, he wants to take his finance out to do something he likes. So our service abilities are reduced. We have two friends very keen to join our project to develop the 6units. We will set up a trust for the project.
The budget for the project is outline as below:
* Total cost 2.3M
* $700,000 for purchasing a development site
* $1.32M for building construction
* $280,000 for other cost including design fee, demolition fee, council contribution fee, bank fee and contingency fee.
* Gross profit 20% of the total cost
Our finance situation:
* We can Inject 30% cash into the project
* Need to borrow 70% loan from bank
* Prefer the loan is not related to our income as I said before our service ability is not good enough to service the loan interest, but we can setup a bank account and deposit certain amount of money into the account, the bank can direct debit interest from the account during the project.
* After the project, we will sell all units.
We need some finance advice to help us to achieve the goal.
Thank you
