Subdivision Finance
Private Mortgages Australia was able to assist this borrower with the finance required to purchase land for the purpose of subdividing.
The Borrower has a background in property development and has completed land subdivisions in Wagga Wagga and Shepparton.
The purpose of this loan was to purchase a property in Kyneton, a town in the Macedon Ranges region of Victoria, which will be subdivided into three or four lots.
The Borrower couldn’t get bank finance as they required a short-term loan and were unable to demonstrate banks’ servicing requirements.
Security on offer was the 1,060msq property in Kyneton as well as the adjoining 1,012msq property which the Borrowers purchased in 2020 and have since obtained a permit for a three lot subdivision.
The exit strategy was to sell the lots and repay the debt.
Details
- Security Property Valuation: $1,320,000
- Loan Amount: $792,000 (First Mortgage)
- LVR: 60%
- Interest Rate: 9.75% p.a.
- Term: 9 months prepaid plus 4 monthly extensions
