- leaMember@leaJoin Date: 2004Post Count: 26
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??
LeaRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
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.Alistair PerryParticipant@aperryJoin Date: 2004Post Count: 891
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.
AlistairleaMember@leaJoin Date: 2004Post Count: 26Quote:"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.