Hey all,
My knowledge of property finance is fairly limited. I am looking at the possibility of purchasing a larger block of established units (6-10+)
It is my understanding that generally most of the major lenders will offer finance on properties with a maximum of 4 units on the title at a max LVR of around 85%(?).
In order to purchase a larger property finance would be required, do the major banks offer this under a specialized system, alternatively are there alternate lenders that specialize in this area of finance?
Generally speaking, would any finance be subject to a lower LVR? and would interest rates reflect what is competitive in the market or do investors pay a premium in this range of investment?
Also, if anyone has done this before. Do financiers look more favorably at an individual purchasing or as a trust/corporate identity?
Cheers in advance
Mick
I have not done it before but when the size of the units increases you need to look for commercial lenders.
If you go commercial the lending rules are totally different so you need to get advice from a commercial lender or a mortgage broker that has a commercial lender on their panel of lenders.Depending upon how much you need, you could consider 180 day (or longer) bank bills. A little bit of a pain as you have to roll them over (refinance) every 6 months, fixed rate of interest, refinancing rate is the prevailing rate (advertised rate + margin/risk), interest is paid upfront however they are quite effective.
You may need to get the right bod in the bank (ours was the manager of the branch where we held some major accounts with back in the days before personal bankers or mortgage brokers).
Mick
In the current climate financing such a sized development you wouldf be limited to circa 70% LVR.
Did a 16 unit block in South Sydney last month and we only got 65% lvr.
Richard Taylor | Australia's leading private lender
Thanks for the responses!
I will adjust my shopping criteria accordingly! :p
Cheers
Mick
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