Subdivision finance

Hi guys,

Currently doing a subdivision for one of my property (2 titles to 5). The plan is to retain the existing property and make 4 extra vacant block at the back (300sqm each street fronting). I am planning to build on 2 of them and leave the other vacant block (future build or sell off as land only).

I am currently with CBA and they have recently changed their policy apparently. Now the maximum new houses for a subdivision permissible is only 2. Hence I am thinking of refinancing my loan out from CBA (will have to cop LMI again!!).

Which banks do you think will allow me to :
1) do the above ( subdivide and have 5 blocks in the end)
2) allow and fund construction of the 2 new houses when I get my development number
and
3) will selling off the new vacant land matter? I know banks do not like to fund construction if I was to sell it after but I am keeping it if I build, it is just that I am not in the position to build all 4 at the moment so I prefer selling it and getting some of my money back (subdivisions are expensive!)

Please note that I prefer to keep the deal residential as I plan to keep 3 out of 5 properties over the long term!
 
Bez you really should be able to get this through CBA - I think there's some miscommunication going on there re; the policy and what you're trying to achieve - I remember you telling me about this development a while ago and it should definitely fit the current lenders policy.

Release titles prior to construction and you won't have any issues.
 
Bez you really should be able to get this through CBA - I think there's some miscommunication going on there re; the policy and what you're trying to achieve - I remember you telling me about this development a while ago and it should definitely fit the current lenders policy.

Release titles prior to construction and you won't have any issues.

Hi Corey,

Do you mean I should be able to get the subdivision approved?

Or

Subdivision and construction of the 2 houses approved (providing that I get the loan after titles are issued)?

Cheers
 
Hi Corey,

Do you mean I should be able to get the subdivision approved?

Or

Subdivision and construction of the 2 houses approved (providing that I get the loan after titles are issued)?

Cheers

Get the division approved, services in and release titles. Refi now x-coll'd loan to create separate loans whilst apply for construction loan. The key is to have new titles issued before trying to have any construction loan approved.

Give me a call/flick me an email if you need help with the specifics - but you really shouldn't be having problems with this. :)
 
Thanks Corey. I have submitted the Miscellaneous application for the subdivision. Will keep you guys updated on how this progresses.
 
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