Private Mortgages Australia specialises in loans for land acquisition.
In this case study the Borrower has a background in property development and civil engineering.
The purpose of the loan is to provide finance for the purchase of a 26.1ha broad acre allotment in Caboolture, QLD, with development approval for a 42 lot subdivision.
The Borrower can’t get bank finance as they are seeking to borrow against the valuation of the property with DA rather than the purchase price.
Security on offer is the development site in Caboolture.
The Borrower will start marketing the pre-sales in July 2020 with a plan to have sufficient pre-sales to allow refinance and development funding by February 2021.
Security Property Valuation: $5,050,000
Loan Amount: $3,030,000 (First Mortgage)
Interest Rate: 11% p.a.
Term: 6 months plus 6 monthly extensions
Approval Fee: 2.0% (plus GST)
including Fixed Referrer Fee: 0.50% (plus GST)