Hi,
I am looking at a block of 6 units (5×1 bed and 1×2 bed) in Nth QLD which are already strata titled. The asking price is $859,000. The units will require a significant cosmetic upgrade but are structurally sound. I am keen to renovate and sell. I spoke to a business banker today about finance he requires an 80% LVR which straight away makes the deal a no go for me. They are currently rented for an average of $180pw. Likley sale price once the project is completed is $200K for 1 bed and $240K for 2 bed.
Combined income is $178K pa ($82K and $96K). Our PPOR was purchased in Jan for $630K, current loan value is $504K.
Is there anyway to make this work. One thought I did have is as they are already strata titled that my wife and I could potentially purchase 3 each in our own names and thus get access to residential finance at 90% LVR…
JW
Yes you could purchase them individually as long as the purchase contracts can be split (and the vendor may not like that) and both of you individually can support the individual loan amounts.
Secondly have you considered the possible GST implications especially if the property is to be "substantially renovated" as this may not make the deal so attactive.
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
