All Topics / Finance / Loan for commercial property

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of msyooimsyooi
    Participant
    @msyooi
    Join Date: 2015
    Post Count: 2

    Hi Guys,

    I am new here. My wife and I are both doctors. Our combined annual gross income is around $750k. We have found a commercial property with a solid tenant and 12 years remaining on current lease and 2x 10 years renewal options after that. We are looking for a mortgage broker to help with the finance. What is the maximum LTV ratio we can get for this?

    Many thanks.

    Martin

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Really dependent on the commercial property, purchase price, asset type, location amongst other factors – having an indepth discussion with an investment savvy broker will give you a lot more info.

    It can be very easy to say something desirable like 80% LVR but that wouldn’t necessarily be in your best interests.

    In reality depending on the security, 65-75% is the norm for CIP LVRs.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Really dependent on the commercial property, purchase price, asset type, location amongst other factors – having an indepth discussion with an investment savvy broker will give you a lot more info.

    It can be very easy to say something desirable like 80% LVR but that wouldn’t necessarily be in your best interests.

    In reality depending on the security, 65-75% is the norm for CIP LVRs.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Martin,

    A lot depends on what sort of property it is and the actual size of the loan. Being Doctors you can possibly get better terms than people in other professions, but such concessions tend to be easier to get for smaller eg sub $1 mil loan amounts. If you put aside your profession you will be able to get somewhere between 70% and 80% LVR contingent on the size of the loan, the type of property and where it is located.

    Regards
    Alistair

    Profile photo of msyooimsyooi
    Participant
    @msyooi
    Join Date: 2015
    Post Count: 2

    The property is a child care centre with a good reputation and a long waiting list.
    Building area around 900sqm and land is around 2300sqm.
    It is located next to a main road with AMF Bowling, McDonald, Big W and Woolly across the road.
    The current rental is $270k + GST + outgoings. Asking price is $3.4M.
    What do you guys think?

    • This reply was modified 9 years, 7 months ago by Profile photo of msyooi msyooi.
    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Location, structure, importance of Rate vs LVR. A lot of complexities here – if you’re genuinely wanting definitive advice with these kinds of deals it’s going to be best to engage directly with a broker who can drill down into the specifics.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    Being a doctor you will have access to special commercial loans; via the big 4 banks.

    LVR: 75-80%
    Term: Up to 15-20 years possible with 3-5 years i/o
    Rate: Sub 5.20% Variable or fixed from 4.85% for 3 years

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of BluechipBluechip
    Participant
    @steevo07
    Join Date: 2015
    Post Count: 1

    I’m looking To borrow to buy an industrial investment for 2.5 mil and having a secure 6 year lease in place offering a 7.5 % ret and being a new building what would be the maximum amount I could borrow considering I could put up 800 grand up and collateral in 2 homes valued at 1 mil. Any one that could offer me some figures?
    Cheers

Viewing 8 posts - 1 through 8 (of 8 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.