Hi all, was referred by a friend here.
We are trying to get finance for a $200k rural property and the banks are just not interested; even rural lenders like rabobank.
I have a full time gov`t job, excellent savings history, and a good share/investment portfolio.Apparently a $30k deposit isnt enough and even if we liquidate some of our investments to come up with a bigger deposit they are still not interested as then the lending amount is under $200k (60% = $120K) so still not interested.
Anyone offer any help or advice.
I will also add that if we wanted to buy in the "city" we could borrow much more and thats no problem. (i understand that rural is harder to sell etc), but what do we do?
A broker suggested a margin loan against our portfolio, but i just dont know about that either.
Vendor finance?
Thanks, Mark.
Hi Mark
Firstly welcome to the forum and I hope you enjoy your time with us.
Without additional information it is difficult to comment why you are experiencing problems however one reason could be the size of the land or property you are looking to purchase.
Large acreage is not flavour of the month with most lenders but i have to be honest havent come across too many deals we couldnt finance.
Feel free to provide more information and we can certainly advise further.
Richard Taylor | Australia's leading private lender
it`s 620ac Richard with a 3×1 on it.
I`ll email you.Block of units.. interesting to find out!
Block of units.. interesting to find out on how to finance it
ha ha little remote for units i think mate. zoning may be a problem
Hi Machine
Just responed to your email nothing to do with zoning more like size of acreage.
Wont get LMI on that.
Richard Taylor | Australia's leading private lender
Its very hard to finance rural properties, especially large acrerages. Too much risk for the bank.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
my comment about the zoning was for the guy posting about units Richard.
so no mortgage insurance.
80% LVR.
60% loan, on $200k!
So if we were to offload our shares, who would give us a 60% loan? anyone?
did you ask for commercial or residential rates?
it has to be commercial mate its a business loan only, doesnt come under residential apparently.
What sort of LVR for rural property purchased at Auction?
Potential security which I have to offer is 1 x PPOR, 1 x res inv, $100K plus cattle.
No cash deposit (unless I sell the cattle, which takes too long really).
SHi Mark,
Can be tough – I’m not associated with them but Moody Kiddell brokers now to rural finance – sometimes brokers maybe your best option.Also did a couple of Rabobank enquiries of the below site – and they seem to take me more seriously
http://farmbuy.com/Listing_Display.aspx?ListingID=61957
Good Luck!
Think you will finding getting Rabo to do a deal in the current climate extremely hard.
Couple of options i can think of but all depends on the actual property and of course more importantly the lvr required.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
SHales wrote:What sort of LVR for rural property purchased at Auction?
Potential security which I have to offer is 1 x PPOR, 1 x res inv, $100K plus cattle.
No cash deposit (unless I sell the cattle, which takes too long really).
SShouldnt need to sell cattle, get a loan against them with a stock agent, they will do 100% loans.
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