Loan for Land Development

[Smm91]

Does any one here know if there is any loan available for DA approved undivided land? Say I?ve got a 600 sqm block of a 300 acres property which has got the DA approval. Will any bank or financial institution provide me loan to develop that land? The land would still be undivided and under a single title.

Any information will be greatly appreciated.

 

[Jess Peletier]

Just to be clear, you want to buy the 600sqm parcel that hasn't yet been subdivided? Assuming that's what you're hoping to do, you'd only be able to get the loan to purchase once there was a title for the new property, so the subdivision would have to happen first.

You can't get a loan for a property that does not exist yet, and even if you could it would be very risky for you to buy a property where you are not on the title.

 

[Smm91]

Thanks a lot Jess. The plan is to buy 600 sqm parcel now with an initial payment. Then when the DA approval happens in a couple of years down the line, I would need to bring in the development cost for my piece of land. All these time, I would have a unit certificate saying that I own 600 sqm land in that property. The DA approval will show all plots there, but under a single title. So if I can show that I've a unit certificate and a particular plot in the DA approved plan, will I able to source the loan? I would still not have any title though.