Triplex Finance
- Thread starter belleran
- Start date
Hi belleran,
If you are building a triplex (3 units at once), your finance options become more limited. Have you run your numbers through a broker? Perhaps if there is enough equity in your house you can avoid a construction loan altogether and make the process more simple for yourself. What are the numbers involved?
If you are building a triplex (3 units at once), your finance options become more limited. Have you run your numbers through a broker? Perhaps if there is enough equity in your house you can avoid a construction loan altogether and make the process more simple for yourself. What are the numbers involved?
As Aaron says and you already know quite limited once you get over 2
But, just doing "inner city " dewllings at 90 % LVR at near 1500 k lend for a build and hold, so not impossible if the balance of the deal is good
ta
rolf
But, just doing "inner city " dewllings at 90 % LVR at near 1500 k lend for a build and hold, so not impossible if the balance of the deal is good
ta
rolf
that would be easier for sure( certainly for the broker) but is this what will work for you middle to long term ?
are they build and flick or long term holds ?
ta
rolf
LOC against PPOR can work. Just gotta tread lightly because it is effectively a cash out and they will want to know why. Telling them you are doing it to build 3 units isn't a good reason 
BTW has your broker told you which lenders will do a 3-unit construction loan? Or has he said there aren't any?
BTW has your broker told you which lenders will do a 3-unit construction loan? Or has he said there aren't any?
Looking at the options it seemed Westpac might be the most accommodating. He had had recent experience trying to find a loan for someone else wanting to do a triplex and it did prove to be difficult to find a source of funds which had reasonable terms.
If the LOC was about $520k and the project needs about $620, how can we fund the balance?
If the LOC was about $520k and the project needs about $620, how can we fund the balance?
We would have sold at least one and possibly kept the others. It may now be better to flip.
I am a little nervous borrowing so much in these uncertain times. Our area is not dependent on mining for its economic future but it is being buoyed at the moment by the expectation of increased economic activity due to future mining activity in nearby regions. And as we all know this may not eventuate as mining companies are pulling back their projects in some areas.
The broker certainly gave us warning about the things that can go wrong if we had our house as security and negative things happened like our building co. going broke and not being able to find another builder for a long period of time etc etc
I am a little nervous borrowing so much in these uncertain times. Our area is not dependent on mining for its economic future but it is being buoyed at the moment by the expectation of increased economic activity due to future mining activity in nearby regions. And as we all know this may not eventuate as mining companies are pulling back their projects in some areas.
The broker certainly gave us warning about the things that can go wrong if we had our house as security and negative things happened like our building co. going broke and not being able to find another builder for a long period of time etc etc
Westpac resi for 3 on one title construction...I don't think so. Not sure a broker should be 'trying' for a loan unless it will most likely be approved. I have got a 4 unit construction loan for a client before, and it was an easy process.
You could borrow on the land itself so you free up cash for construction.
You could borrow on the land itself so you free up cash for construction.
wesuck struggle with a duplex
Id suggest NAB, CBA or choiclend, but only if you are going to hold 2 or 3
otherwise the LOC and land loan is a better option often
t
arolf
nah
if the mortgage has been discharged its water under the bridge
Id suggest you pick up the phone tommorow and speak with Aaron. Your current broker while solution oriented, seems a little out of their depth, sure Im making assumptions, but I see this pattern a lot
ta
rolf
Yep there's 2 that come to mind under residential terms. Of course it comes down to servicing as well but apart from that it is fine.
This makes no difference. Family Trusts are really common.
Interesting
Why use DT for development ?
Not judging coz I know zip about what you are looking to do, just for the SS community ?
ta
rolf
Just be careful because you are asking for a significant cash-out. Most lenders (especially the majors) will ask the purpose of the funds and I am pretty sure they will be reluctant to give it to you if the purpose is a property development. I would say a construction loan might be better if you are able to afford/get one to avoid this issue. Plus with a construction loan the bank controls the entire construction process which can be beneficial as there is an incentive for the builder to do things properly or he won't get paid!
