Hi Guys, Hope you could help me a little.
Am looking at a Student Accommodation set up for an investment.
We have just settled on another property a couple of months back… which we borrowed 90% This property is a positive cash flow deal too. Returning 10,920 pa. Gross.
So we don’t really have any spare money for a deposit.
So are we best to go for a no deposit home loan or use our first property as security?
Not sure of the best way to structure this,
The numbers really add up for us in this deal and is in a great area with growth to come as heaps of infastructure and new jobs.
The property is in Vic
Also we were thinking of getting the vendors to pay the stamp duty on property.
So offer them close to full asking on the proviso that they pay stamp duty costs.
Still is positive cashflow taking into account these variables.
Also another issue, the property would rent for $500 per week for 46-48 weeks of year which is a fair bit above market rent of $230 per week, will the banks only consider the market rental in approving our loan?
Thanks and hope anyone can helpcollie
It will be hard to finance student accomodation, if you declare that is your intention. The lenders may want 20-305 deposit, which you don’t appear to have.
Even if you could borrow 95%, it may be very tight equity wise.
do you have any other cash you can put in?
Terryw
Discover Home Loans
North Sydney
[email protected]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
Don’t really have nay cash to put in, as we need to keep a bit for furnishing the place.
Thanks for your reply Terry.
Regards,collie
Collie,
Is it a purpose built student accomodation or simply a larger house. If the latter then it will be treated as a normal residential loan.
I furnished mine mostly through garage sales etc but did buy new whitegoods with extended warranties.
You may be able to use the existing property as security – it all depends on the valuations.
Cheers,
Simon Macks
Residential and Commercial Finance Broker[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
It is a large 5 bedroom house.
How would I find out wether I can use exisitng property as security? Is it best to just get a broker on the case?collie
Add the total loan sizes and divide by the totol of the valuation on the existing and the purchase price of the new property.
If the result is a loan of 95% or less of the security values then you may have some options.
Or speak to a broker – a quick call or email will soon see if you are in business or not!
Cheers,
Simon Macks
Residential and Commercial Finance Broker[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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