I attended a seminar last night and heard that if you owned a commersial property and leased it to yourself at a higher rent it would add to the value on the property which you can borrow against to buy more property.
If this is true why not just focus on commersial as the numbers are better than residential.
Any thoughts on this??
D
Not really. Banks and valuers are aware of these things. Rent does effect valuations, but it is not the only thing. But every little bit helps.
Terryw
Discover Home Loans
Parramatta
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You might get away with one, but how many commercial premises can you rent to yourself at inflated prices?[hat2]
Hey Wealth for life,
The other question i would ask is, Do u need to rent a building? ie do you have a business that can support the mortgage etc with high cash flow? Because the bank/lender will need to see that u/yr business can support the extra liability of the mortgage on this property(I am assuming it has a mortgage) if u rent it to yrself, but if you rent it out to tenants at market rate at least you will have a contract which will have the mortgage and some extra cashflow accounted for to show yr serviceability for the property and maybe future purchases to the lenders.
Even if you dont have a mortgage on the property the lenders will have to be able to see that you have sufficient income coming in from somewhere to pay this “inflated”rent .We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
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