Is the Multi-Stages construction idea achievable?

Hi Forumates:

Not sure how often a developer will face construction finance issue after a DA is approved?

For example, a developer (like me, an average professional) got a 4 units permit and work out the construction cost is about 1 million. Due to lack of development experiences before, so usually the LVR can be got from banks might be 60 - 70%, which means 30% deposit for the construction plus other pre-build cost (such as engineering drawings), holding cost, landscaping cost and so on. it's just too much for a beginner without too much equity as my understand.

So I'm thinking what about split the 4 units into 2 stages (assume the existing house can be kept)? Build 2 units first and then the rest 2, which might be easier from finance perspective point of view. But wondering if there is anyone would buy the stage 1's units when they know there is stage 2 would be built later (possible noise, dust etc...)?

Or what about go to sub-divide it into 4 titles after the DA, then go to the bank to ask for a 90% finance for each unit's construction?

Are they achievable? Or are there any other better options?


Don't take offense, because I think I've done the same thing, but I think you've overextended yourself. If you can't afford to pay for engineering drawings, etc and put up a 30% deposit, you probably should have started out with a smaller project.

I'm in the same boat, have approval for 5 but having trouble getting finance for construction. Now if instead I just did a couple of duplex builds first to build up my bank balance then maybe I wouldn't be so stuck like this.