I am just starting my investing and I have found a small block of residential units that would create a very positive cashflow. The problem I am having is getting finance. I own land which I would use as collateral but am being told that the units are classed as commercial as there are more then 3 on the torrens title. This means I can only borrow 70% which after pruchase and spending approx $20K on needed improvements would leave me short around 40K. Is there a way to buy them as residential using the land as deposit and improvement money and getting a loan for the 80% difference. Also they are not in a bank lending area being approx 100km from the nearest big town, although the town is in short supply of rentals with a waiting list in the estate agents office.
Hi Happy
Buying a block inline can make good investment sense however finance can often be frustrating.
Have a few lenders who will do 80% on upto 6 units but it does make a difference of the post code and town.
Would need additional information to advise you further.
Richard Taylor | Australia's leading private lender
And also the interest rate as well…. needs to take into account
@richard, are they going to charge purely residential rate or semi commercial/residential rate?
GOM
All depends.
Just done a 4 pack at standard residential rates (actually even had the 0.7% discount) but that was a block in a regional city.
Richard Taylor | Australia's leading private lender
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