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?
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.