Hi all,
Answer me this question, and I will be a very happy chappie!
Regarding serviceability of loans.
One house, (current property that the bank and I own) 7 bedrooms, rented out on a “room to room†deal to students, generates $715 per week, but the lenders will only recognise the $460 per week (from the valuation) that the whole house will rent for.
How can I get the lenders / banks to recognise all the income generated by a investment residential property, rented out on a room to room basis, instead of only recognising the amount of rent a standard REIQ lease / property valuation lists?
If I could work out a solution to this problem, I would be able to get 106% loans, the TOTAL income covers the serviceability, and I can find / make enough of these properties to keep me busy for a long time
I have found one perfect (subject to building inspection) house for $370 000 or less, that I would love to get into. Seven bedrooms, two kitchens, two bathrooms, two toilets, two lounges, fully furnished, two of almost everything, (except the animals [hair2]) 737 sqm, 11 kilometres to the Brisbane CBD, about 140 metres to a train station, I can build to 3 stories anytime in the future, and with 5 tenants from the get go.
And the answer is ….
Cheers
TMR
[biggrin]Hi TMR,
I can’t help you, however you may want to post the same question in the finance section.
Also the September Australian Propert Investor Magazine page 78 has some suggestions on Property Valuations.
Out of interest do you manage the property yourself?
What is your occupancy rate during Uni Holidays?
Good Luck.
TimTim
Have you got 7 leases you can show the lender?
Maybe another lender is in order?
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Hi Tim, and thanks for your reply.
Yes, I do manage the property myself, and as I posted in the HELP forum, after 18 months of managing the house, I can now tell A LOT of interesting stories.
During Uni holidays? Has not been a problem yet.
There is a mix of workers and students in the house.
I would have to say Adult and International students have been really good.All for now.
Cheers
TMR
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