Buying vacant commercial land and possible development

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Buying vacant commercial land and possible development

Post by Otto Dargan »

Hi homeowner,

With a vacant commercial land loan, you may be able to borrow up:
  • 50% to 70% of the land value depending on the lender and the size and nature of the property. This general rule is applicable to land over 50 hectares in size.
  • 80% up to 95% if the land value if the land is between 2.2 hectares and 60 hectares and is zoned residential..
  • 95% if the property value for up to 50 hectares with a house on the block.
  • 60% of the land value for vacant farmland. If you have a strong situation then this can go up to 70%.
If you have enough equity in your residential property then you may be able to borrow up to 100% of the land value and also qualify for a longer loan term of 25 years rather than the standard commercial loan term of 10 to 15 years.

If you're thinking about developing the land then we can help you qualify for a:
  • Commercial development loan - You may be able to borrow up to 75% of the land and construction costs (hard costs) if you're building a block with more than 4 units or a standard commercial property.
  • Residential development loan - You may be able to borrow up to 95% of the hard costs for blocks of units less than 4.
You can go through our website to learn more. You can also speak with one of our mortgage brokers directly by calling 1300 889 743 or enquiring online.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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