Pensioners & Finance

I have lots of questions but will get the ball rolling with this one?

What's the chances of a pensioner getting finance of about $300k to knock down their property and build a duplex. Their property is fully owned and worth about $360k.

The duplexes would each sell for around $450k.
 
So are you selling both or keeping just one? Both are investment properties? Most lenders because your both on pension's they may not look. However it is still possible.
 
Open to either suggestion. The current thinking is to sell one and move back into the other, but if circumstances are right maybe sell both. Does it make a difference?

Would having 1 sold off the plan sweeten the pot for the lender? (I know nothing about getting an OTP project started and would need to find out.)
 
I'd really need to look at the numbers, especially the equity etc. There are a few brokers that can help. Seems to be popular with a few of my clients wanting to downsize and not move. The biggest pain is moving out for a few weeks during the construction process.
 
Depending on the loan amount and the amount of pensionable income and potential rent i cannot see an issue.

It will be treated as any normal income by many lenders although so will liabilities such as living expenses and this is where a lot of deals fall over.
 
Hiya Olly

I reckon it would be doable on a project based loan.
ta
rolf

Hi Rolf,


Just so I'm clear on this - is a 'project based loan' something specific/special as in different interest rates etc or does it mean a non standard loan (a mortgage not paid off over many years) or a bit of both?
 
Right, so would this be the order to do things in -
  • get plans drawn up
  • get council approval
  • get the finance sorted
  • get a builder

What else do I need to know/do? :confused: All advice appreciated.

OMG! I think I'm becoming a developer!!! :eek: :)
 
I have lots of questions but will get the ball rolling with this one?

What's the chances of a pensioner getting finance of about $300k to knock down their property and build a duplex. Their property is fully owned and worth about $360k.

The duplexes would each sell for around $450k.

HI Olly,

Personally, I think there will be a few variables here and you might have to present your scenario to your lender or broker. I believe you will be assessed on a case by case basis based on your actual age, terms of pension and assets.

Some lenders will only take a percentage (50%-80%) of your Pension as income. A few of the mains like Westpac will use the 100%.

I would be tracking down the finance path first to confirm your project can be funded. :)

Regards JO
 
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