Private Mortgages Australia is able to assist with short-term renovation loans. In this case the Borrower had a history in property investment and had purchased a two-bedroom apartment for $637,000 in Randwick, an eastern suburb of Sydney. The apartment was what you’d call a ‘renovator’s delight’ and the Borrower believed it was well under market rate and planned to undertake major renovation and sell at a significant profit.
The Borrower was unable to obtain traditional bank finance because it was a short-term loan and the banks did not look favourably upon their collateral security properties in Oberon and Port Headland.
With bank approval not forthcoming, Private Mortgages Australia was able to accept the value of the additional security and provide a loan of $746,000 (125% of the purchase price) for the purchase of the property and renovation costs. The LVR was 39.53% and the interest rate was 10.33% p.a.
The Borrower completed the project and sold the property for a considerable profit at $820,000 within eight months to extinguish the loan.