Subdiv as owner builder financing hurdle

[Paul j F]

We have had a readability study done + second opinion on a subdiving our PPOR. Figures add up as it having good profit potential with a registered builder managing and excellent if I did it as owner builder. I have enough friends in the trade but are interstate, I have done two Reno's so am confident on my ability.

Problem... I don't have the funds to get it to lock up, I could sell an IP but don't want to ATM and CBA (current mortgage) flatly refuse owner builder finance. I could try other lenders but so far most require you to fund it to lock up.

Also thought about about a registered builder who will do the paperwork and keep an eye on me but essentially leaving me as a silent owner builder.

Thoughts, options or techniques. Any help really needed as I have wanted to do this for years and now financing is my hurdle.

 

[Aaron_C]

Why not get a cash out on existing properties and do it via your own financing? (if you have enough)

 

[Shahin_Afarin]

You have a few options such as a hybrid build - it comes down to what LVR you want.

Are you doing the subdivision first and then the build or the other way around? who is the current loan with?

 

[tobe]

If the figures add up with a registered builder, do it that way. If it only is worthwhile as an owner builder, leave it.

While lenders have some crazy and inconsistant policies and rules, owner builder provisions arent one of them. Its not just your current lender that has issues, its lending in general.

 

[Peter_Tersteeg]

I strongly advise against going owner builder, but if you do, one of the better options (although there are no really decent options), would be St George group.

Many people like the idea of owner builder because they believe it will save them a lot of money.

Lenders dislike owner builders because they have the stats to back up their belief that due to all sorts of problems, it ends up costing more money and puts the deal in a negative equity situation.

 

[Aaron_C]

There is no worse security than a half-finished house.

 

[Rolf Latham]

Nab are one of the better easier marks for this niche

ta
rolf