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How to finance development of 2/3 houses?

  • 03-09-2021 4:43pm
    #1
    Registered Users Posts: 428 ✭✭ average hero


    Hi all,

    My family has a potential opportunity but that side of the family doesn't know whether they can realise it or not so I am coming on here for a bit of help. Any help at all would be very much appreciated.

    1) So the family home is on the coast in Dublin in a Southside suburb. The parents are well into their 60s and their two daughters are in their 30s. One would be taking in about 30k and the other about 50k. There is an outstanding mortgage of approximately 300k on the property.

    2) At the back of the property there are garages (cinder-block, tin roof) that are on the plans which back out onto a council-owned estate behind. Their father bought access to the road a number of years ago as an investment.

    3) They have received informal advice from a friend they know that 2 or potentially 3 townhouses, small cottages or apartments could probably be built where the garage is.

    So, my questions are:

    a) How do they go about investigating this further? How would they go about progressing the project overall if it was deemed possible?

    b) How could they finance this? They would ideally like to develop the back so that they could sell them to pay off the mortgage.

    Any help or advice would be greatly appreciated. Thanks all.



Comments

  • Registered Users Posts: 3,339 ✭✭✭ dubrov


    Talk to a local architect and they would give you advice on whether it is likely you would get planning approval for what you want.

    Talk to a local QS and they can give you an approximate price to build.

    Talk to a bank about financing the build. Given it would be an investment the deposit required is likely to be much higher.

    I'd do the above in order as if one of them fails, there is no point going forward.



  • Registered Users Posts: 395 ✭✭ ax530


    Planning advisor would be a good start.

    If the site gets planning it could sell for great price, this would be a low risk option.

    No experience financing a development for selling but I expect it difficult enough.

    Best of luck to them.



  • Registered Users Posts: 720 ✭✭✭ Ronney



    Another angle to look at would be the Tax implications.


    There is a loop hole for parents to give children sites on their own lad to build a house which avoids CGT.

    https://www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/transfer-of-a-site-from-a-parent-to-a-child.aspx



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