All Topics / Finance / 6 Units on one title – no strata, country zoning… help

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  • Profile photo of lealea
    Member
    @lea
    Join Date: 2004
    Post Count: 26
    July 26, 2007 - 4:47 am

    Hi all,

    I have a client who has signed a purchase contract on a block of 6 units – all on the one title, no strata – in a rural town. Zoning is residential. Each unit is approx 43 sq. metres.  Needing 70% LVR.

    Most places I've tried tells me it falls under Commercial finance. The others simply say "no way."

    Client is adamant that rates are a factor – otherwise it could tip the purchase back into negative geared territory. He's not willing to go there.

    Any brokers out there with any suggestions who else I should try??

    thanks

    Lea

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 26, 2007 - 5:17 am

    Lea

    You say you have a client are you a broker ?

    70% LVR should be a walk in the park. Have done similar deals in the last fortnight.

    Richard Taylor | Australia's leading private lender

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891
    July 26, 2007 - 5:37 am

    Hi Lea,

    As Richard stated 70% would be fairly easy, dependent on location and the clients income you can probably do this at 80% at a very competitive rate.

    Regards
    Alistair

    Profile photo of lealea
    Member
    @lea
    Join Date: 2004
    Post Count: 26
    July 26, 2007 - 9:45 am
    Quote:
    "Should be a walk in the park".

    Yes. It should be. It's not.

    Quote:
    "Done deals like this in the last fortnight"

    Great. Good for you. I'm pleased you're so well-versed in these matters.
    I'm not here just to advertise myself like so many others seem to be. I'm here to learn as well. That's another reason why I asked the question.

    Quote:
    are you a broker

    Yes.  I have been for 8 years. But I've not come across a property quite like this one before. That doesn't make me stupid or unable to learn. It means I haven't seen one like this one until now.

    I thought perhaps posting on a forum filled with other investors, somebody might offer some valid, constructive assistance. I guessed wrong, huh?

    As all units are under 45sq metres in size in a Category 7 rural location in south Australia – that limits my options
    Two of those options both said – "not 6 on one title – they'll only do 3 maximum". The other said "this is a commercial deal".

    After checking with the BDM's from quite a LOT of different lenders – who all said NO except one, I got 65% LVR with a 7.39% rate. Commercial deal. That's it.

    Everyone else said flat NO.

    Thanks anyway for your helpful suggestions. I've learned a lot about asking questions on forums.

    Lea

Viewing 4 posts - 1 through 4 (of 4 total)

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