All Topics / General Property / What determines what is a COMMERCIAL property??

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  • Profile photo of Misty1Misty1
    Member
    @misty1
    Join Date: 2004
    Post Count: 348

    Can anyone clarify what EXACTLY determines if a job is a COMMERCIAL construction?

    I have heard conflicting advice about what lenders call "commercial". One situation is that a small unit site MAY be considered for a commercial loan by some lenders, but not by others!

    Is there a CLEAR definition of how a job is classified as commercial??

    Thanks.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Normally the zoning.

    In saying this whilst you wont get mortgage insurance on a Commercial deal you may stil get more than 80% LVR depending on the quality of the security.

    Interest rates also can be just as keen.

    Richard Taylor | Australia's leading private lender

    Profile photo of Misty1Misty1
    Member
    @misty1
    Join Date: 2004
    Post Count: 348

    Okay……so what if its a business zone, but it will be used for residential (units) development?

    Then, if that's how banks view it, how come for a res 1 zone unit site I have been told I may get a commercial loan??

    Then, how does insurers ascertain if one is working on a residential or commercial site? As I gather this will affect insurance alot??  And there may be other "interested parties" for a development that need a clear definition of is it a commercial or residential project!

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Business zone will equal a commercial loan.

    Richard Taylor | Australia's leading private lender

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