Re: What issues do you foresee with our application for a bush block?
Posted: Thu May 02, 2019 6:04 pm
Hello Allen. Welcome to the forums.
Different lenders have different requirements for hobby farm (bush block) loans.
They look at:
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a hobby farm loan.
Cheers,
Different lenders have different requirements for hobby farm (bush block) loans.
They look at:
- Land size: You can borrow up to 90% for land sizes between 10-50 ha (hectares). Generally, the higher the acreage is the lesser Loan to Value Ratio (LVR) you can borrow.
- Location: There are postcode restrictions as lenders want the property they can easily sell-off in the event of foreclosure. You can use our postcode calculator to find out how banks view your location.
Income from the block: The turnover from the block cannot exceed $20,000 in a given year as it then would be considered a commercial farm. - Zoning: Some lenders also take into account property zoning while others don’t. Land can be zoned rural, rural residential or the equivalent for your state.
- Access: The land must have easy all-weather access. Dirt roads are fine as long as they are maintained well.
Services: The land must be within range to be connected to the electricity grid without excessive costs or have solar power.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a hobby farm loan.
Cheers,