Something of a small miracle occurred this week – the planner from council called to say he’d be doing the site inspection this week ahead of making a decision on our development application. He actually wanted to come right at that moment, but I was in the midst of putting both kids to bed and the house was a bombsite, so he said he’d make another time this week.
Of course, it’s Thursday now and he hasn’t called back, but it’s progress, right? Sorta? Tomorrow will be seven weeks since we submitted the application. The statutory requirement for determining a DA is six weeks (I think). I am hopeful we’ll have ours signed off before the 10 week mark, but wouldn’t bet on it.
Meanwhile, the director of the agency I work for has suggested she make regular payments into my account and we can adjust when I submit my monthly invoices. This is good because it I’ll have a regular payment history when we eventually get around to applying for an increase to our loan.
The bad news is that analysts are predicting a huge property market crash in Sydney. On the news last night they were suggesting prices would fall by up to 25%
Our financier operates on a maximum 95% LVR which means that our property has to be worth at least $25k more after the renos in order for them to give us the money we want. This would not have been a problem before – the renos would have added around $80-$100k value.
But if the overall value of our house drops by 25%, then the renos would suddenly have to add waaaaaaay more value to maintain the LVR. So there’s yet another reason we may not be able to borrow as much as we’ll need.
I do have considerable savings, but not enough to cover the entire cost of the project, so we need to be able to get at *least* $15k from the bank (we’re asking for $60k).
Why must it all be so difficult, time consuming and expensive? What we thought would be a one-week turnaround with a complying development application has morphed into a seven-week marathon that is not over yet. And we still don’t even know what additional paperwork they need for the construction certificate application so that whole dance won’t even start till the DA is signed off.
I will be surprised if we get the final go ahead, with the builder locked in and the finance sorted, before June. At this rate we’ll be lucky to have the job completed by Christmas.



