Hi!
I am looking at purchasing a block of 8 units and strata-titling them. I was wondering if anyone could tell me what Loan to Value Ratio (LVR) I would be likely to obtain on each of the units once they are individually titled. The block is in Brisbane.
I have been told that I could usually obtain a LVR of up to 90% on up to four units (in a single block, individually titled), but I don't know what I can get for more than four units. If anyone knows, I would really appreciate your knowledge.
Thanks!
Jason
Jason
4 units and above is the magic number as with anything over 4 you will not be able to get LMI.
Max LVR on 8 is probably 75% of purchase price (80% maybe possible at a stretch but interest rate will be higher) and 75-80% of renovation costs subject to a maximum of 65% of GR.
I have developed and strata titled over 50 blocks in Brissie over the last 12 years from 4 packs to 24 units in New Farm so know the strata market pretty well.
If you have good equity in other properties that can support 100% LVR then this can be used.
Richard Taylor | Australia's leading private lender
Good to know Qld. I once went to Westpac to query on their loan to purchase a block of 4 units for me to subdivide and sell individually. However, they said because it was 4 (i.e. more than 3 units), I needed to come up with 30% deposit. Guess from your post, it indicates there are alternatives available.
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