All Topics / Finance / Finance needed for Serviced Apartment

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of kpikpi
    Member
    @kpi
    Join Date: 2006
    Post Count: 30

    I am currently seeking finance for a serviced apartment in Perth. My bank will lend no more than 80%. I require 95% plus costs. Does anybody have any recommendations for where I can get finance for this type of deal? Help would be greatly appreciated…

    Profile photo of DraconisVDraconisV
    Participant
    @draconisv
    Join Date: 2006
    Post Count: 319

    Hmm, have you tried looking at vendor financing, try the creative forums and the Investor HQ section on this website.
    They should give you some broad ideas about how to achieve finance.

    Christopher.

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

    You might find getting more than 80% LVR on a serviced apartment difficult.

    Without more information it is hard to provide a proper recommendation.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner.
    Ph: 07 3720 1888
    [email protected]

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of MortgagemanMortgageman
    Participant
    @mortgageman
    Join Date: 2004
    Post Count: 164

    We deal with one lender who does serviced apartments to 95% provided the building is below 10 storeys and the apartment is greater than 50sqm. However the rates are around 9% so you would need to decide if this would be economical for you given the affect the rate would have on yield.

    Regards,

    Cameron Perry
    Director
    Perry Financial Strategies
    Level 13, 30 Collins St
    Melbourne VIC 3000
    Ph (03) 9662 1999
    Fax (03) 9662 2044

    Profile photo of THEHEATHTHEHEATH
    Participant
    @theheath
    Join Date: 2006
    Post Count: 27

    Why are they so reluctant to lend for these type of apartments? Many of these type of places have rental guarantees and pay what I would consider to be above average rent so……?

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

    A couple of reasons why the banks don’t lend to the same level on such apartments.

    1) Rental Guarantee – most of these are given by $2 shelf companies and carry very little weight. If the Guarantor is unable to rent the property himself then there is little to stop them going in to bankrupcy and the Gurantee is a worthless piece of security.

    2) On repossession there is minited demand in resale for such a property and therefore the Banks who are not collectors of real estate reduce the exposure level to which they lend.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner.
    Ph: 07 3720 1888
    [email protected]

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of LizzyLizzy
    Member
    @lizzy
    Join Date: 2004
    Post Count: 230

    CBA have told me they do resort apartments to 95% + LMI call them.

    Liz

    Mortgage Lender
    The opinions expressed in this public forum should not be construed as professional advice of any nature.
    1300 780 826

    Profile photo of smoothsatinsmoothsatin
    Member
    @smoothsatin
    Join Date: 2006
    Post Count: 14

    Hi,
    Have you read my thread called “hotel rooms”? I discuss some issues about these apartments there.

    In terms of finance, depending on how much the 15% is in $ terms, consider a new credit card. Provded your cacpacity to service is ok, you should be able to get 10-? k limit, simply cash advance the amount required and rollover the debt amount to another card operater every six month to take advantage of the low intro rates that just about every institution offers. I did the same when starting out with shares a few years back, i recall paying 4-6 % for a few years on the balance with various institutions. Not only is there potential for lower lending rates, you also get the cash very quickly.

    Good luck with it

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

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