3 townhouse development commercial loan

[mimimao]

Hi guys,

I was just wondering is it likely for commercial loan private lenders to impose presale requirements? I plan to build 3 townhouses and have to go for commercial loan for various reasons. But I'm reluctant to do pre-sale as the current market is VERY bad...

I'm in metro Melbourne btw

thanks heaps!

mimimao

 

[Bradsdad]

A lot depends on strength of the deal eg LVR/additional security.

 

[Rolf Latham]

If you can show that you can hold them based on the serviceability then you should be apples.

Doing a 4 unit site at the moment where the borrower wants to hold them all, and servicing is strong.

You may also be able to do this deal on standard resi terms and Lvrs depending on many balls of string

ta
rolf

 

[APerry]

Hi Mimimao,

3 Units is fine with no presales. Probably the best you will get in terms of loan size is 60% of end value (inclusive of GST). If you have presales you can get more than this. Servicing is not required.

Regards
Alistair

 

[MichaelW]

I did my 3 unit development in Mona Vale NSW with no pre-sales but it was a commercial lend 80% LVR at a higher interest rate. This was a year ago though and the lending market has improved somewhat since then.

Cheers,
Michael