Hi guys,
This is my first post,I have 2 IP no.1 is positive and no.2 is neural.
This time I am interested in a block of 4 units in the 1 title. I was hoping if anyone can help solve my confusion as I have researched in the net about financing for a block more than 2+ units, I heard you will needing a 30% deposit down, under a commercial loan or I heard that 2 units would be a normal investment loan ( loan ratio of 80% or 90%)Although I have seen my lender on Friday, he Says I can borrow a loan ratio of 90%
I want to offer between 800,000 and 830,000.
rent is 50,000 per annumappreciate for all the replies..
Hi ,
I am a small player in Investment properties but have a number of them over the past 8 years .I bank with ANZ and currently on a breakfree package -which allows me to apply for up to 5 loans with no application or establishment fees with yearly fee of $320 and discounted interest rates as the value of borrowings grow – which suits me fine .
I did finance 2+ units on the one title with them and the Min deposit with ANZ at the time was 20% down – regardless of the number of units using 20% deposit from available equity in my other assets and there was sufficent rental income and personal income to service the loan .
Not all banks require this as a Min deposit but there are other factors to be aware of and that is the mtg. insurance you will have to pay upfront if deposit is less than 20 %.
Good Luck with the Offer on the Units – hope it all works out for you .
Cheers,
Eyekewst81hp79 wrote:Hi guys,
This is my first post,I have 2 IP no.1 is positive and no.2 is neural.
This time I am interested in a block of 4 units in the 1 title. I was hoping if anyone can help solve my confusion as I have researched in the net about financing for a block more than 2+ units, I heard you will needing a 30% deposit down, under a commercial loan or I heard that 2 units would be a normal investment loan ( loan ratio of 80% or 90%)Although I have seen my lender on Friday, he Says I can borrow a loan ratio of 90%
I want to offer between 800,000 and 830,000.
rent is 50,000 per annumappreciate for all the replies..
HI.
Block of 4 units is fine with standard residential lending, LVR of up to 90% as well – but only a handfull of lenders will consider this. The top 3 main players are St George Bank, Suncorp and Macqauire bank.
Anything more then 4 units (up to
can still be residential lending but with LVR at 70-80% max. Selected non banks.One important point you will need to comfirm with your lender is; what are the conditions for a 90% LVR – because the bank might accept the loan but the the insurance (LMI) might reject your loan!!!
If your having trouble finding out, PMS me which lender your with and i be able to tell you the main conditions.
Good luck!
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thank you for your helpful replies,
My 2 previous IP is with Westpac. I took a $120,000 equity loan from my first IP with westpac.
to fund a deposit for my next IP which will be with CBA.
This time I am interested in purchasing a block of units which I only have enough for a 10% dep + stampduty
We are looking for reno block of units,hopefully to only let us be in position sightly negative gear with a 10 % depst81hp79 wrote:Thank you for your helpful replies,
My 2 previous IP is with Westpac. I took a $120,000 equity loan from my first IP with westpac.
to fund a deposit for my next IP which will be with CBA.
This time I am interested in purchasing a block of units which I only have enough for a 10% dep + stampduty
We are looking for reno block of units,hopefully to only let us be in position sightly negative gear with a 10 % depI''m guessing you never done this sort of "development" before if that is the case; with 10% dep you be limited to only 7 lenders for a block of 4 unit under one title – One of them being CBA, but they will be harsh based on your LVR – They will only allow certain area/postcode to be accepted and certain apartment type as well.
So the first thing we normally suggest and offer to our client in your situation is to pay for a valuation on the property to be done first ( cost ~$500). But if you email me the address and link of the property your trying to buy i be able to give you a rough guidelines on approval rate for each of the 5 lenders for that property ( at no cost).So in short to answer your question, yes you can get a loan for block of 4 units with 10% dep and no it wont be with westpac ( there min LVR for this loan will be 80% to avoid the LMI) . The property will most likly be negative geared for the first 3 years.
Without knowing your full details ( Area, postcode of the units, Your total asset and income etc…) i can only provide you with a general outline on what to expect. But PM me or email – [email protected] and i can post you some form, and i can give you a more define answer.
Regards,
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
One last point- you mention your going to be doing some renovations to the property; if the property is run down and not "rentable" in it's current positions it will be very hard to get finacne with any of the banks due to the valution falling short – for a run down property chance of approval would drop from 70% to 30%.
Also where would you have the funds to do fund for the renvo? unless you get a cash out loan with your IP loan.
Some food for thogught
Regards
Michael.Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Micheal,
I have purchased a block of 2 units before and done huge reno to the property.
But I have'nt purchase anything on a 10% dep B4 using my dep funds from a equity loan.
I have read plenty of books and attended property investing seminar they all have the same quotes" Savers are Loser" us other people money to make money.I have tired to call the 1300 74 5626 it's sounds like it's not your direct contact number
Cheers Jan
st81hp79 wrote:Hi Micheal,
I have purchased a block of 2 units before and done huge reno to the property.
But I have'nt purchase anything on a 10% dep B4 using my dep funds from a equity loan.
I have read plenty of books and attended property investing seminar they all have the same quotes" Savers are Loser" us other people money to make money.I have tired to call the 1300 74 5626 it's sounds like it's not your direct contact number
Cheers Jan
Hi Jan,
The number is correct it's our company's office number and the receptionist Zoe normally forwards the message to us brokers, as we are always on the road ( sometimes it goes to voice mail if the receptionist is that there).I be in a meeting with some lenders soon. But i have received your message and i will give you call back within 1 hr.
P.s Your right- you need money to make money- that's why the rich always become richer!
Regards
Michael04055 36088 – Direct number
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
CBA or Adelaide bank will do this type of security!
AIF QLD wrote:CBA or Adelaide bank will do this type of security!True, but for only block of 4 unit under one title – Most of the lenders would finance it 20/41 of them…however it gets tricky but possible when you want block of 10 units under one title for residential rate 0.0
regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
can still be residential lending but with LVR at 70-80% max. Selected non banks.
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