At what point is a block of units considered commercial rather than residential. If a commercial loan is required, what are the requirements, how does it differ from a residential mortgage?
Fortune Favours the Bold.
Depends on the lender. Usually the cutoff is three or four dwellings.
Deposit needs to be higher, rate is higher and sometimes the term is lower.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
OK, but why? Do the banks perceive the risk to be higher?
Fortune Favours the Bold.
Yes.
Market doesn’t experience the same growth nor does it have the same vacancy rates.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Having all (or many of) your eggs in the one basket has to be more risky than spreading them out.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thank you both, well put. Buying houses was easy but buying a block of flats is another learning curve all over again. Appreciate you replies, will do a lot more investigating before deciding on this one.
Thanks
PKFortune Favours the Bold.
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