Hi all,
I want to purchase an investment block of units for about $330K, the rental income is aprox 30K. I have another IP worth aprox 250K with an income of 10K ( I still owe 60K on this property). I recently took a pay cut and my salary is down to 45K, however I have 200K in cash ready to go but i want to put down only 20% (so i can finance future investments) towards the new IP. Would i be able to borrow about 250K for the block of units? My deposit would be about 70K.
All the calculators i use on the internet say i can only borrow 150-170K? can't be right
Also, If i get denied lending from a bank I heard this comes up as a red flag for future borrowing, is this true?
regards
How many units in that block?
It must be in the rural town?The LVR probably looking at 60-65%
You are probably needing specialist mortgage lender…. on commercial rate??
Get your mortgage broker or one of the forum broker to help youCheers
Hi Yobbo,
Which state are you in?
Regards,
YIHi Yobbo
Bit of a grey area as it will depend on a number of factors including the number of units / size of each in the block, post code etc
I have 2 or 3 similar deals on my desk at the moment and the variance in lending criteria for each deal is considerable.
Without further information it is difficult to give you an exact answer but you will not get a standalone 80% lend if there is more than 4 in the block.
Richard Taylor | Australia's leading private lender
It depends on what units is it. if they are individually titled standard residential units you may be able to get 80% borrowing. Can you provide a bit more information about these units?
From my calculation you have more than enough capacity. did you include the rental income when you did your own calculation?
William Cheng
Here's a little more info. Location is rural NSW. 4 units in the block. One title (non-strata). 2 BR 1 BATH for each unit.
I did not include the rental income of the proposed purchase in my online calculations. The online program did not provide that info.At 4 units on a single Title i think you may 80% LVR depending on how rural.
Richard Taylor | Australia's leading private lender
A little off topic… but in purchasing a block of units held under freehold title, would you encounter any problems with attaining future finance considering there will be a bunch of separate tenancy agreements? Or are lenders generally cool with that?
Simon Plummer | SP
https://www.sp.com.au
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Not that easy Plummer depending on how many units in the block.
Under 4 on the same Title should be ok but 4 and more will normally be considered as Commercial.
In saying this like everything in this world everything is subject to negotiation.
Have a 7 pack of brick units on 1 Title i am doing at Residential rates at the moment. Would have never thought we would get it through but there are other circumstances.
Richard Taylor | Australia's leading private lender
Hi Richard,
Who is doing that if you don't mind me asking?
Unofficially one of the Big 4 thru their Commercial Dept.
Just have a good rapport with the Credit manager.
Richard Taylor | Australia's leading private lender
Wow… Highest I have been able to get in recent times is 75% for that kind of thing… and it would probably be on commercial rates.
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