I am currently seeking finance for a serviced apartment in Perth. My bank will lend no more than 80%. I require 95% plus costs. Does anybody have any recommendations for where I can get finance for this type of deal? Help would be greatly appreciated…
Hmm, have you tried looking at vendor financing, try the creative forums and the Investor HQ section on this website.
They should give you some broad ideas about how to achieve finance.Christopher.
You might find getting more than 80% LVR on a serviced apartment difficult.
Without more information it is hard to provide a proper recommendation.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
We deal with one lender who does serviced apartments to 95% provided the building is below 10 storeys and the apartment is greater than 50sqm. However the rates are around 9% so you would need to decide if this would be economical for you given the affect the rate would have on yield.
Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Why are they so reluctant to lend for these type of apartments? Many of these type of places have rental guarantees and pay what I would consider to be above average rent so……?
A couple of reasons why the banks don’t lend to the same level on such apartments.
1) Rental Guarantee – most of these are given by $2 shelf companies and carry very little weight. If the Guarantor is unable to rent the property himself then there is little to stop them going in to bankrupcy and the Gurantee is a worthless piece of security.
2) On repossession there is minited demand in resale for such a property and therefore the Banks who are not collectors of real estate reduce the exposure level to which they lend.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
CBA have told me they do resort apartments to 95% + LMI call them.
Liz
Mortgage Lender
The opinions expressed in this public forum should not be construed as professional advice of any nature.
1300 780 826Hi,
Have you read my thread called “hotel rooms”? I discuss some issues about these apartments there.In terms of finance, depending on how much the 15% is in $ terms, consider a new credit card. Provded your cacpacity to service is ok, you should be able to get 10-? k limit, simply cash advance the amount required and rollover the debt amount to another card operater every six month to take advantage of the low intro rates that just about every institution offers. I did the same when starting out with shares a few years back, i recall paying 4-6 % for a few years on the balance with various institutions. Not only is there potential for lower lending rates, you also get the cash very quickly.
Good luck with it
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