All Topics / The Treasure Chest / Somethings Wrong here!

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  • Profile photo of zuki124zuki124
    Member
    @zuki124
    Join Date: 2003
    Post Count: 9

    I have just started to buy investment properties in the past 12 months. I bought 1 unit in melbourne and 3 in brisbane and had no hassle with finance, we own our own home and have a loc of $270,000.
    We have now found a cash positive property that consists of 4 units on 1 title returns close to 8% net and can achieve 9% to 10% net but it is in a big regional town. We have approached 3 brokers and they cannot find a lender who will give us 60% of purchase price at a resonable rate and use the property as security, the only ones they come up with is lenders that charge close to 8% IO.
    They all say that they don’t like lending in these areas.

    My question is if you want cash positive properties you can only find them in regional areas and then you have the dramas of getting finance.
    Am I missing something here?

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    Hi

    4 units on one title can be an issue with some lenders. NAB will still do it at 80% and ANZ will do it at 70%.

    The bigger lenders (i.e. Big 4) have a better capacity to lend in smaller areas (because the smaller lenders have to mortgage insurer all loans regardless of LVR). CBA will lend 80% just about anywhere (but they will not do 4 units on one title).

    I would suggest trying NAB and ANZ (in that order) if you haven’t already. If they have declined then I would be very surprised.

    Cheers

    Stu

    Property & Finance News
    at http://www.prosolution.com.au

    Profile photo of RonulasRonulas
    Member
    @ronulas
    Join Date: 2003
    Post Count: 96

    Units are not in Queensland in a regional town beginning with R are they?[;)]

    You will always miss 100% of the shots you don’t take!

    Profile photo of zuki124zuki124
    Member
    @zuki124
    Join Date: 2003
    Post Count: 9

    Thanks for your responses and by the way the regional town is in Queensland but it’s not as far as R.

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