Forum Replies Created
Ta,
Have done that, thanks again.
Paco
Thanks thecrest,,
Looking for motel leasehold, any area NSW country, 3.5 star to 20 rooms?, no restaurant, unable to determine price range until I can determine availability of funds thru either equity, cash thru sale of investment properties, super funds (if possible or required) and any severance monies acquired once leaving job after 16yrs.
I have to go to that job right now for the weekend, so will probably not get back on here until Monday. Appreciate your thoughts and will definitely pick your brain some more soon.
Regards,
Paco.Gday thecrest,
I know this is an old post to which I reply, but can you clarify the "equity" component here. As I understand it, the 80% lend is based on the total value of the property, ie; home value $500K, owing $271K = equity of $229k.
You say a lend of $183K is possible, but I believe it should be calculated thus, (or at least this is what I am told by brokers)
House value $500k @ 80% equity = $400k, debt $271k = $129k available to use against the $500k home value (80%).Is this accurate, or am I way out? Looking to buy as well into the motel scene, but need to sell properties because it frees up the cash, as opposed to leaving 20% in the banks hands.
Appreciate your response, have followed your posts and signed up today to pick your brain. You certainly seem to know the business and your advice to people on this forum is valued I'm sure by those asking.
Regards,
Paco.thecrest wrote:Quick reply as requested.
In theory $229K equity, mortgaged to 80% of its value, ( $183K) will enable you to borrow enough to buy a :
Leasehold for $366K ( assuming LVR of 50% ) or a
Freehold for $457 ( assuming LVR of 40% ).
That does not include costs for stamp duty, loan establishment fee, valuation on equity, and legals etc.
If that equity is residential, then Banks used to lend at res rates to buy some types of commercial property.Best to talk to one of the experienced Finance Brokers on this Forum to find out what the going rate is,
in case it's not 80%.cheers
thecrest