URGENT NON BIAS ADVICE NEEDED FROM A NOVICE OLD BLOKE
I’VE RECENTLY PUT AN OFFER IN FOR A GROUP OF UNSTRATED FLATS WITH GREAT POTENTIAL. FLATS ARE RETURNUNING ABOUT $450pw.
PURCHASE PRICE TOGETHER WITH TOTAL BORROWING COSTS STAMP DUTY ETC WILL BE ABOUT $470K.
QUESTION: FLATS WILL NOT BE POSITIVE CASHFLOW, HOWEVER, IF STRATED WILL INCREASE IN VALUE LONG TERM. MY DILEMA IS:
– VERY HARD TO GET A LOAN ON UN-STRATED FLATS-ANY ADVICE WOULD BE APPRECIATERD ON AVENUES TO APPROACH– AM I BETTER OFF CHANNELLING MY INVESTMENT TO TOWARDS SOMETHING LESS RISKY
ANY OTHER ADVICE WOULD BE APPRECIATED
THE NOVICE[baaa]
Have you quantified what that potential is?
Will it be a full doc loan or a lowdoc loan.
What is the postcode.
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]Development Finance Specialist
Hi,
Woodsman has a very good point. You need to know exactly what you are dealing with. What is the strata cost and can it actually be done. Good luck if you decided to go ahead.
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
You definitely need to check whether it is going to be possible to strata title that particular block. Depending on the age, a strata conversion might require substantial money to be spent to put the building in a condition where the council will permit strataing eg soundproofing, fire regulations
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