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!
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!