Hi, I'm trying to buy a block

NSW 2250

May 27, 2018

NSW 2250

May 27, 2018

Hi, I'm trying to buy a block of land (1 acre) with RU2 rural zoning for $160,000. It's been on the market for over 2 years. I'm hoping to get an 80% loan so I have a bit of savings left over but have 26% saved and can use the full amount if needed. I was previously approved by one of the major banks for 80%, the valuation came back at 160k, but it was rejected at the last minute due to 'poor marketability' of the block. With it being an unusual block in a rural area I think the major banks see it as too high a risk. Are there lenders that specialise in rural vacant land loans that would approve something like this? I've been told by my previous broker that a guarantor won't help as guarantors are for when you have less than 20% deposit, however, I have friends who've had more than 20% deposit and still had a guarantor. Would really appreciate any assistance, Faye.

Lisa

11 months ago

Hi Faye, thank you for your enquiry. The lender will definitely look at the land marketability given it is zoned rural. In saying that normally lenders will accept 80% LVR to mitigate the risk. Having a guarantor in your case may not assist as it is more to do with the land itself rather than your deposit or capacity to repay. I have recently assisted a client who purchased land that was zoned rural and was able to place the loan with a major bank. I would love to find out more about your situation, simply contact me via my profile page to discuss further. Kind Regards, Lisa

Victoria

11 months ago

Hi Faye. I can assist with finding a lender that would accept your block of land at 80%. I would require more information before I could provide a solution. Please feel free to get in touch via my broker profile. Kind regards, Victoria

Lee

11 months ago

Hi Faye. Thanks for your enquiry. I’m happy to make some enquiries for you to find a suitable lender. Simply get in touch via my profile link with the address of the property. Best regards, Lee Boserio, Bos Financial Services.

Azm

11 months ago

Hi Faye, there may be hope for you on this as it seems the issue was with the Valuation Report identifying Risk Category 4 for Marketability. Additional valuations may be ordered through other banks to check the opinions from other Valuers. More than happy to assist if you can find me on the broker list and request to be connected. Thanks Azm (Yellow Brick Road Parramatta - Principal and Wealth Manager)

Iva

11 months ago

Hi Faye. I would require a few more details about the block of land to see if I could assist. Please get in contact via my profile and I’ll see if I can help you out with this one. Kind Regards, Iva Rasic. BorrowRight.

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