Lenders dont like approving finance for properties under 50m2.
Does this put people off purchasing these properties even if the numbers add up (ie, they are +cf).
Also what do people think about I/O only loans as opposed to P and I loans.
Marty
The more experienced investors invariably choose IO loans. Even on their PPOR.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Marty,
We have an investment in regional Vic which consits of 4 X 36m2 offices in one building which are all seperatly stata titled. We had no problem with financing through IMB, maybe cos it was all under the one roof?? We took out a P&I loan on that one which suits as fine. I think I/O would of been fine as well specially with more money in back pocket each month, the only downfall IO was they only had a 5 yr term as opposed to 20 yr with the P&I loan. all depends if you want to hold on to the property.Financing property under 50 Sq M isn’t a problem it all depends on what percentage you want to borrow.
Cheers Richard
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http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Originally posted by JLtarra:, the only downfall IO was they only had a 5 yr term as opposed to 20 yr with the P&I loan.
Hi Jltarra,
Don’t forget that there is nothing to stop you refinancing.
Derek
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http://www.pis.theinvestorsclub.com.au
0409 882 958
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