Subdivision Headache

Hey everyone

I was just after some advice from some more experienced investors out there as to what I should do and what direction I should head in.

First ill run off some background info so it is easier to grasp the situation.
I?m 20 years old and currently have one IP to my name, which I purchased around 8 months ago. The unit I purchased cost me around $315k and I have rented it out from day one. The IP is negatively geared by around $150 per week.

Since purchasing this property I have saved around $25k clear. However problem now stems from the fact that my lender is only willing to lend me a sum of around $300k-$400k under speculation for my subdivision project. This obviously will not do as I am planning to purchase a property execute some renovations on the existing house subdivide and build another property on the block.

My question is whether or not I should look for a property to purchase now, which has the potential for subdivision later and collect rent on the property and the capital gains in the meantime. Or should I just continue to save and wait until I am able to gain access to a loan, which is substantial enough to fulfill the project as a whole?

Thanks in advance
 
Can you clarify what you mean by 'under speculation' for your subdivison.

How much is the property you're looking to buy?

You mentioned you have $25k, do you have more funds to put towards the purchase? How do you plan to purchase the property, renovate and pay for the cost of subdivision?
 
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