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  • Profile photo of JLtarraJLtarra
    Participant
    @jltarra
    Join Date: 2004
    Post Count: 90
    May 11, 2004 - 3:36 am

    Hi All,
    I’m in the process of puchasing my fist IP.
    It’s a commercial building in regional Victoria which consits of 4 offices. price for the 4 is $120K, 3 of the 4 are tenanted at just over 7% return

    I have $300K Equity in my home for the 30%- 35% which the bank wont lend 100%.

    I don’t really want to use my house as sercurity but of got a feeling i might have to.
    Is there any way around this?

    Secondly, can someone recomend a bank or similar for commercial loans.
    most of the banks have said no way to commercial property loans

    Thanxs all
    John [biggrin][biggrin][biggrin]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 11, 2004 - 4:16 am

    John

    You can get around using your home as security (directly anyway) but setting up a redraw facility and taking the deposit from that account and then the rest from the main commercial loan.

    I don’t do many commercial loans, but you might find it more difficult getting loans in regional areas, so they may ask for a lower LVR. Try Bankwest and Citibank.

    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

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598
    May 11, 2004 - 6:54 am

    I have found Suncorp, St George and Big 4 better for regional locations.

    Cheers

    Stu

Viewing 3 posts - 1 through 3 (of 3 total)

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