need some creative thinking here

Discussion in 'Innovative Techniques' started by LouiseMc, 13th Nov, 2007.

  1. LouiseMc

    LouiseMc Member

    13th Jun, 2007
    perth wa
    Hello all,
    i have been watching here for ages, soaking up so much great advice.
    Heres our situation:
    We began investing less than 6 months ago. I was paralized with fear, and spent months researching. We had a home valued at $550,000 with $89,000 owing on it. We borrowed against the equity to buy a property in South Hedland for $130,000 then won another at Ballot for $100,000
    A real estate agent has told me both are worth a bit more now, especially the ballot one. A search of has NO land for sale in Hedland.

    We had a lot of trouble finding a builder (although Kevin aka KPH from Karratha was a fantastic help) so we eventually decised to build a prefab home and ship it up from Perth. A really lovely 4x2 with quality fittings and clad in colorbond and texured render, 3 m veranders and decking around. The agents up there have been really helpful and are confident we could either rent for at least $1000.00 per week or sell for around $760,000 to $800,000 depending on gardens etc.

    We were going to do one first, learn from it, then the other. The first should be onsite around late feb. We COULD do both at once but the builder of the prefabs really wants to get into this market and wants to do one at a time to ensure it is done really well, and a great showpiece for him.

    One of the properties comes with a $7000 landscaping voucher.

    So heres the tricky bit....
    We put an offer in on an AMAZING property which was knocked back and after a couple of months the vendor has said he will accept our offer. The prop is right on the foreshore with 180 deg panoramic ocean views, opposite a launching ramp and park. The dunes have been cut to give unhindered access to the ramps and park, giving us great views. It is suitable for holiday rental at a prime rate (ish) due to its unique location. A PM is really keen to get this property happenning. She says it should be worth around $1000.00 per week. I am only countling on it being renting for one week per month .

    This property is going to cost us $650,000 BUT the vendor needs the money as he has bought another property himself. He wants settlement by beginning of March.

    IF we get all the engineering stuff back within a week,
    AND we got it to the Hedland builder for his quote to supervise the installation
    AND we get it to the council and it is passed under delegated authority ( should do, as it has been built before elsewhere and complies with guidelines etc, doesnt need planning approval)
    AND then get a loan to build (the properties themselves are debt free, we put the loans on our home) (build cost prob around $230,000 all up on the ground with landscaping)

    HOW are we going to be able to get the finance for THIS property? It will literally be worth millions in the future, aspecially when we can reno it. (We are in the building industry- hubby is an electrician)

    He want us to go unconditional. However we have only been investing for a couple of months and have done very very well. I am not ready to go unconditional.
    Should we consider bridging finance?


  2. quoll

    quoll Member

    11th Jun, 2003
    Mid Coast, Adelaide
    I'd be talking to my accountant and mortgage broker and seeing what help they might be. I'd also try 3 other mortgage brokers and have a chat to your bank. If you can find out how to finance them, you then have a better idea on what is possible.

    I would suggest you will get knocked back by a few lending institutions so that's why I reckon you need to talk to more people. Might even be worth going in partnership with someone but that's a last resort.