All Topics / Finance / Financing for 7 units in 1 block but separate titles

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  • Profile photo of KKaurKKaur
    Participant
    @kkaur
    Join Date: 2020
    Post Count: 0

    Hi there

    Can someone please let me know the best “GO TO” financial institution for financing of 7 units on separate title but 1 block?

    Its mortgagee in possession sale but bank is not interested to sell it separately. Any responses will be appreciated.

     

    Cheers:)

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Kkaur, Treated as a Commercial loan so you will be back to 65-70% Max lvr.

    Location will be important as if regional will be less than that.

    Unlikely they are going to allow split contracts so going to need to be funded inline.

    Would need a little more information to give you a more accurate indication as to fees, rate etc.

    Cheers

     

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    It might be possible to go to separate lenders – might be hard if one contract of sale though

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of KKaurKKaur
    Participant
    @kkaur
    Join Date: 2020
    Post Count: 0

    Thanks Richard, I have emailed you back.

    though we already have our residential property and 1 investment property- I have come across first time that residential property might also need commercial lending. What is the purpose of financial institutions to treat it commercial?

    By end of all, question to all investors- is it worth to pay high rate of interest for block of units or it depends case to case?

    Cheers :) Kamal

     

    Profile photo of KKaurKKaur
    Participant
    @kkaur
    Join Date: 2020
    Post Count: 0

    Thanks Terry, yes its one sale of contract.

    one of the lenders already offered financing of 4 units with 30% deposit.

    Cheers:) Kamal

    Profile photo of KKaurKKaur
    Participant
    @kkaur
    Join Date: 2020
    Post Count: 0

    Hello Terryw

    Bit more info on the property we are looking to buy- all the units are have their own strata titles, will have separate contract of sale for each unit, but will be sold to one party at once time only as units do not have body corporate- is this possible to go for separate lenders?

     

    Cheers ::)

    Kamal

     

     

     

     

     

     

     

    Profile photo of KKaurKKaur
    Participant
    @kkaur
    Join Date: 2020
    Post Count: 0

    Structuring for Commercial loan

    Hi Guys

    All the responses we are getting so far is that we have to go for commercial lending with at least 30% deposit.

    Now other thing got to know that commercial lending cannot be done under personal names- it has to be trust or company.

    Now it opens many other questions for us-

    For trust- as losses cannot be distributed to the beneficiaries, why people go for trusts for property investing? For initial years any property could be negatively geared. Though these losses can be accumalted for years to set off against future income, as I understand.

    Another question: If we get a commercial loan under a company, we have to register company under GST after income crosses $75,000-Does that mean we will charge GST on residential rental income?

    If we tend to sell such property under company in later future, will the residential sales attract GST?

    If we transfer property from Company to our personal names in future, will it happen at market value with all the formalities of stamp duties etc?

    Can I please have your perspective of all the investors who invests in blocks of units- Under which kind of structure they prefer to invest as commercial lending cannot happen under personal names?

    Cheers J

    Kamal

     

     

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Commercial loans can be done in individual names

     

    If you are asking about ownership structure then seek specific legal advice as many issues consider.  Transfer of title or declaration of trust will both attact duty and CGT to it pays to get advice.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Dont worry Terry we have explained to KKaur that a Commercial loan could be done in personal names.

    We have also been advised that she was unable to get 7 individual contracts or indeed 1 of 4 Units and 1 of 3 Units.

    As a consequence we advised her 65% maximum lvr on a block of 7 given the regional location.

    Cheers

     

    Yours in FInance

     

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

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