Why can't we get finance for this block?

[homegirl]

The property we are looking at (for early 300K) is a 4 acre block OF LAND, with an COUNCIL APPROVED SHED on it. A building site has been levelled and marked for the previous owners own building plans near the shed, but NO building/slab commenced.

Our broker tells us (sight unseen) that there is no way ANY lender will finance us for this block (and YES, we have the right $$ to easily GET finance) so I am a bit confused as to why we COULD get a loan for any EMPTY block of land (lets say, for arguments sake, in the next estate)....but not one with an APPROVED SHED on it? We are looking to build on this land in the near future, as we would any block of land, shed or no shed.....so I'm confused as to what the difference is??? It's a square block that the owner had plans to eventually subdivide, and he also had those subdivision plans approved by the council recently.

What difference does this "SHED" make to the equation? Sooooo confused!

 

[Qlds007]

I think there must be more to this than meets the eye because most securities can be financed to a certain LVR.

The shed will make very little difference.

Maybe your broker knows something about the security he hasnt told you.

 

[homegirl]

But the thing is, our broker was totally confident about the land and financing it, until we told him it had an approved shed on it....which is where I am getting confused, as it seems that the shed IS what made the difference????

 

[Pushka]

We have a freehold holiday home on the River Murray which we were going to use as a security for an IP loan on another property but we were told that it wouldn't be approved.

 

[Qlds007]

HG

What is the zoning of the land, location and purchase price.

What are you looking at borrowing ?

 

[homegirl]

HG

What is the zoning of the land, location and purchase price.

What are you looking at borrowing ?

PM'd you QLDs007

Edit: zoning is rural residential

 

[Rolf Latham]

Hiya

AS RT says, its odd, esp with rural res zoning. If it were rural then it might make it a bit harder

Richard will be able to source something for you there Im sure .

ta
rolf

 

[BoatBoy]

We have a freehold holiday home on the River Murray which we were going to use as a security for an IP loan on another property but we were told that it wouldn't be approved.

And here was me thinking that the boat was the only thing that bank's wouldnt use as collateral.

Dave

 

[Bushy]

Maybe your broker is trying to gasump you
Bushy

 

[homegirl]

Hahahahhahaha, MAYBE!!!!! I just learnt about Gazumping recently....such a weird word!!