All Topics / Finance / Mortage broker help needed.

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  • Profile photo of WAFWAF
    Member
    @waf
    Join Date: 2003
    Post Count: 61
    April 1, 2004 - 6:05 am

    Hi guys, a couple of quick questions for you. If I was considering buying a property to live in and also one which is income producing ie. B&B etc. Would it be a business loan? If the property was valued well and the business a history of good income production will anyone lend more than 80%

    Secondly if I planned to take out a loan to buy land and build say 5 cottages to let out as a business how much will the banks lend (percentage wise) and will they defer repayments for a period until the business is income producing.

    Thanks in advance.

    Waf

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 2, 2004 - 1:46 am

    Hi

    This is a difficult one. The B&B thing would be a commercial loan. You wouldn’t get 80%, probably 70% or less. There may be other difficulties due to location. You would probably have to show you can service the loan on existing income.

    If you want to buy land and construct, it is also difficult. Some banks will lend you money based on the end value. If there is enough meat in it, you could defer repayments and capitalise the interest.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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