I am trying to work out how I can swing the purchase of a 6 unit block of flats on the one title. Is there any bank that will consider this as a residential lend? If not what is the highest LVR that I can loan against it if commercial only? I’ve found the St George 75% commercial loan to be the highest LVR so far…. Need help with this one getting it over the line.
Hi Borg
No lender will consider more than 4 units on the same title as a residential loan.
Although in saying this many Commercial Loans we do are done at very attractive interest rates dependant on the rest of the deal.
Hard to offer more advice with further information.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Richard,
The figures are as follows:-
6 2 br units close to CBD asking price $430,000
Yearly income from rentals $57,000
approx gross yield 13.5%
area has shown 12-15% growth in last 12 months.Borg
ANZ may consider it residential.
Terryw
Discover Home Loans
Parramatta
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Terry funnily spoke to them this afternoon on a 8 pack in Brissie here and they were adamant at State Level (and the State Manager is my squash partner) they wouldnt do more than 4 residentially.
For a full doc deal you are looking at around 7.10% fixed for say 3 years.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
What’s the max LVR?
i can go upto 85% no LMI but slightly higher rate than that.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Richard,
I am very interested in persuing this further with you. I can very likely come up with 15% of $430,000 as a deposit from the sale of one of my IPs in the area, and cover additional costs for the aquisition. Im not too worried about the higher interest rate as it will be an asset that will appreciate in value reasonably quickly.
Borg.
Actually, I draw back of equity will probably be better.
Borg would need a few more details but happy to assist if i can.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
You might want to check out NAB. They will normally do up to 6 dwellings/units on one title @ 80% @ residential rates. They like it of all are currently tenanted.
Cheers
Stu
Missed out on the deal. It’s already under offer/contract now. Was only on the market a few days. I guess you really need to have cash ready the minute you find these deals.
Not really most of these blocks come up and you are able to sign subject to finance.
Just need to get everything else in place.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
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