All Topics / Finance / Deposit for commercial property

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  • Profile photo of TwoShedsTwoSheds
    Member
    @twosheds
    Join Date: 2004
    Post Count: 2
    June 25, 2004 - 12:22 am

    Hi all
    I have read on this forum quite a few times that banks generally require at least 30% deposit on a commercial property.
    Can I use equity in existing residential IP’s instead?
    Thanks

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913
    June 25, 2004 - 1:34 am

    Hi TwoSheds,
    Yes, you can raise the deposit required from available equity in your residential investments,
    As opposed to giving the lender additional security over the commercial loan,

    Regards
    Steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:1800 820 500
    VICTORIA

    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

    Profile photo of everdineeverdine
    Member
    @everdine
    Join Date: 2003
    Post Count: 119
    June 26, 2004 - 10:33 pm

    Hi Twosheds and MM,
    hope you don’t mind me adding a couple of questions.
    In this case are postcodes considered also? ie if the commercial property is in a town next to a large regional centre that is expanding that direction?
    We are having our 2 IP’s revalued this week. The property we are interested in is a group of 4 shops, 2 of which are currently tennanted.
    We have no PPOR.
    Appreciate your help, Diane

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