Hi everyone,
I am a newbie and on a steep learning curve. I wonder if someone can help me out with this.
– What is the LVR for commercial property ? Can i get up to 80% ? (in 2002 edition, Steve mentioned that he and his partner purchased their first com.prop. with a 80% lVR and on P & I 25 yrears term) I thought that most lender would only lend for 10 years.
– When buying a comm.prop. Is stamp duty and GST meant to be the same thing ?
– Can anyone suggest a mortgage broker for commercial property please
– would com.building such as motels appreciate in value similar to residential houses ?
– Does anyone know which government website pertaining licensing motel ? Or has anyone had any knowledge of how to start to operate own motel/boarding house
Thanks very much for all your inputs
regards,
CT
CT
ctl
Commecial property is very difficult to get into first up. As a newbie maybe you should focus on residnetial first. Get some equity then you can purhase commercial property. The rules are different. Better returns on commercial but not as much capital growth.
I agree with Yack. You would be a bit safer starting off with residential investing.
However I have a colleague who does commercial.
Email me and I will forward it to him.
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.
Thanks guys for your inputs. I do share the same point of view of yours.
with commercial property, I do believe that the hard parts being getting a loan and tenants or secure tenant for that matters.
I recently came across a commercial prop in rural NSW. It consists of 15 single bed rooms. It is a brick and double story building. The building is left vacant at the moment and the owner asks for 180000 for it. I have personally inspected the property, it seems to be a moderate good condition overall. Some parts need renovation. One part has just been renovated and cost 32000. I read from “Riches in real estate”, dolf de roos estimated how much the property worth by multiply the annual rental income by 10. i would like to find out how to find out how much it is worth in this stage – not leased. Should i get the council or the bank to do the evaluation ? The biggest task at the moment is get a tenant for that property. I am thinking of leasing it to the local council as commission accomodation if that is possible.
CT
Its only worth what income you can get for it.
The old risk/return scenario. What is the likelihood of achieving the council proposition or hotel option.
I doubt, unless you have a decent deposit and can support the outstanding loan with another income and security, you will not get much of a loan from the bank for this.
For the bank – this sounds TOO risky.
It would be difficult to get finance at a high LVR for soemthing like this in the country. Before you make an offer you would need to get a valuation done to make sure your not paying too much.
you will definetly have to establish that you ohave other income to service the loan.
I wouldn’t beleive everything written in a book, especially one from the Kiyosaki series!
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
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