Browse Forums Home Finance 1 Jul 25, 2010 10:27 pm Most banks have a minimum period before you can switch loans. eg: we are currently locked into our land & construction loan with RAMS for 4 years, otherwise we pay exit fees etc. If for example, you buy land, build and sell the property straight away (say over a 9 month period), are there any banks who will lend you money (land & construction loan) for short periods of a year or under? How do investors/developers avoid bank exit/break fees? Many thanks. Re: Can you borrow $ short term to build investment property 3Jul 25, 2010 11:02 pm I'm wondering that too. It doesn't sound like much time. The example is a country town where the settlement on the block is one month and the builders don't seem to faff around like they do in the cities - quick turn around time. Plus, while settlement is taking place plans to build can be finalised. Hoping someone in the finance sector may have some ideas. Re: Can you borrow $ short term to build investment property 5Jul 26, 2010 4:43 pm Firstly to sell in 9 months you will pay double the CGT that you would pay if you sold after 12 months so I'd avoid that. I'd use a line of credit if I wanted a quick sale at the end. Money can come out, go in anytime. No limits on time.Buy place, sell, put money back, repeat. Re: Can you borrow $ short term to build investment property 9Sep 02, 2010 10:31 pm travelbug Firstly to sell in 9 months you will pay double the CGT that you would pay if you sold after 12 months so I'd avoid that. I'd use a line of credit if I wanted a quick sale at the end. Money can come out, go in anytime. No limits on time.Buy place, sell, put money back, repeat. Would the 50% discount on CGT apply to a purely investment property? We'd love to get an investment properly in the next 6-18 months and need to starting learning about the best way to do it too (somersoft is very useful!) We are funding our PPOR build using a line of credit, only because we don't need much to pay off the construction, but lots of flexibility for other things like landscaping, furnishings etc that we can pay off very quickly. The main problem I'd see with using a LOC to build an investment property is having enough equity to get a sufficiently large lOC. T&T Knockdown and rebuild - building Metr1con Nolan 41 (43) @ http://tim-and-tina.blogspot.com! http://www.verdantdental.com.au If you are in Victoria you have a statutory right to your own building inspector regardless of builder's consent. No negotiations are required. However the builder will… 1 2867 Hey everyone Not for me or anyone I know, just generally interested. For a single allotment house, are you allowed to take the fence on both sides of your house and… 0 20876 |