Hi all,
Has anyone had experience with owning a property management?
Can I expect a lend on a rent roll, with no cash but using home equity put up as part security?
Regards, Phil
Hi Luckyphil
Yes you can. We have financed several over the years. Normally limited to 50% of the value of the rent roll so if you can come up with the balance in equity (Lender will normally go to 80% of your equity) you may have a deal.
Suggest someone like Anz they can then tell you who they would want to undertake the valuation.
Cheers Richard
[email protected]There is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
G’day Phil….
Some of my clients would be interested. My advice to them is that you would be getting a 20% plus return and as such, I consider it a safe investment for them.
If you wish email me and I will put them in touch with you direct.
Cheers
Billfromoz
Quote:Thanks Richard,Glad ANZ rated a mention, as my PPOR loan is with them. 50% plus equity sounds good to me. Do I understand you correctly that I may achieve an equity loan of 80% over and above the original home loan? OR .. is my borrowing limited to 80% of the value of the house as a new single loan?
I hope the answer is the former, with 2 seperate loans.
I plan to see ANZ within the fortnight, but would appreciate a few basics from you before I speak with them.
Thanks again, Phil
Hi Luckyphil
Yes you can. We have financed several over the years. Normally limited to 50% of the value of the rent roll so if you can come up with the balance in equity (Lender will normally go to 80% of your equity) you may have a deal.
Suggest someone like Anz they can then tell you who they would want to undertake the valuation.
Cheers Richard
[email protected]There is no such thing as a problem.
Just a solution waiting to be foundHi Bill,
20% .. I had worked figures closer to 25%, but even a conservative 20% is obviously well worthwhile. Given the low current loan rates makes this even more attractive. Lots of fat to absorb increases.
I have just been hit over the head with a very simple solution to what was to be my next question. You have just answered it.
If I understand Richard correctly, I might at best be limited to 30-50 properties. But if 3 or 4 others had a joint interest, we could offer to buy an entire management. AND everyone wins. Control of ownership, proprietor retains management plus gets the big capital injection.
E-mail is on the way.
Kind regards, Phil
G’day Phil….Some of my clients would be interested. My advice to them is that you would be getting a 20% plus return and as such, I consider it a safe investment for them.
If you wish email me and I will put them in touch with you direct.
Cheers
Billfromoz
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