How to expand your lending options when subdividing your section.
Banks and mortgages are a maze to navigate through. There are now alternative options that specialise in these construction projects allowing you to maximise financial gain.
Gone are the days when you bought a quarter acre piece of land with one house on it, mortgage it for 35 years with the same bank and voila!- you can retire with enough funds for retirement!
Did you know, people buy and sell their homes or land on average of every seven years? We are also renovating our homes and buying investment properties to rent. Additionally, more and more of us are building multiple dwellings on sections to ensure our financial comfort for retirement.
elocal sat down with Louise Court and Michelle Costello from Jennian Homes in Franklin. Louise is one of the experienced New Home Consultants at Jennian and Michelle is the General Manager. We asked them what the options are when looking to arrange lending for your project, especially now that more and more people are wondering if they can subdivide something off their backyard or farm or lifestyle property. Are mainstream banks still helping with these projects?
Louise said “Most traditional banks and mortgage lenders can be less comfortable with anything apart from standard homes, renovations and rental properties.
Once you start looking at slightly larger projects it can take a specialist lender to enable a project to proceed smoothly or even get off the ground to begin with.”
Banking has turned into a flexible space of having relationships with more than one bank or lender for different structures/facilities and projects.
We are now in a position where that 1000sqm piece of land is worth a small fortune and staying with the same bank may not give you the ability to maximise its potential.
Louise enthusiastically continues, “Here comes the modern version of lending! We have experience with specialist partners in this space who have access to a variety of lenders.
Some of our specialists are those who have been managing mortgages for over 10 years in the banks, others are outside lenders who work with experienced financial institutions that specialise in one off projects.
They can have access to genuine lenders who have lots of money and are looking for places to invest”
Michelle adds, “Jennian is able to get answers quickly and professionally from our expert planners and from our lenders- sometimes in a few days! We also have experience with different types of investments, duplex, townhouses, and terraces. Jennian are experts at designing solutions to fit your land exactly, gain the necessary paperwork and sign off and give you advice about what will work best on your land”
Jennian facilitates the process the whole way, with their specialist subdivision consultants, financial and construction teams available to come together and liaise on your project.
We invite you talk with the experts at Jennian, Give them call and pop in to talk about your project and how you could pay off your existing mortgage and build a new home or investment.