Hi Everyone, I am new to this but I sure would appreciate some help.
I am purchasing a student accomodation apartment in Carlton of 21.5 sqm, using vendor terms. (Property Value of $184,000 and rental income of $1,166.67)The vendor has agreed to 50% payable in 30 days and the balance of the lumpsum in 5 years. (The agreed rate of 6.7 % interest only – payable monthly in arrears).
Total borrowings required including Stamp Duty, Legal & borrowing costs of $108,165 LVR is 58.75%
Assets: I dont own a house, but I have another investment apartment, with a secure tenant, in Melbourne CBD. Market Value $305,000
Income: Personal exertion $50,000 p.a.
Rental Income $1,235.00 per mth = $14,820 p.a.Liabilities: $2841.41 (include credit card)
I have just been advised by the National Bank that they no longer lend against Student Accommodation. It is hard to find a lender who understands borrowing using vendor terms, let alone to lend against such a small property.
Any suggestions as to a lender who can help?
Theo
Hi Theo,
a student accomodation with 21.5 m2. Looks like a tough one. How much is the mortgae balance on your current rental property? I beleive you could use it as an additional security. Who was your current lender? Perhaps Mortgage Hunter or Mobile Mortgage Market can lend you a hand with your case.
herman
CRIKEY… $270/wk for 21.5sqm
they must really stack the students in for this sort of $$$$!
are you sure that you are not being touched in a big way??
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneHi Theo,
I agree with Herman, If you have available equity in your apartment then you should consider utilizing that,
I very much doubt a mainstream lender will come to the party when you throw vendor terms, student accommodation and 21.5 sqm into the mix.What is the LVR on your current IP? Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Thanks for your comments guys. The first IP was also purchased under vendor terms, using the NAB, a year ago. (I’ve always used the NAB because they understood Vendor finance conditions). However, the recent change in lending policy on this type of property has given me a new challenge. At present there isn’t enough equity to cover the $92,000+ I require. I am talking to an equity partner, but I prefer to finance it my self. Any other suggestions are most welcome! Cheers, Theo!
Theo
Hi Theo,
have you tried a private lender, e.g. a solicitor or accountant? Could be of higher interest rate though. But if your number crunching still stacks up, worth trying I think. Any other options….. any one?
Cheers,
hermanThanks for your help. I’ll let you know how this pans out.
Enjoy the weekend!
Theo
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