Advice needed

From: Gail H

Hey everyone,
I have contracted to buy a block of
5 x 2-bedroom flats for $232,000 (subject to finance). The yield is $460 a week.

The problem is that I can't find a lender who will lend more than 70% of the purchase price (though Rolf is on job - God bless you Rolf). I have about $140,000 equity in my house to raise the deposit against, so I can raise the 30% needed, but is it worth it? The problem is I'd be tying up too much of my home equity in one IP purchase. On the other hand, though,I'm newly self-employed so doubt that anyone would lend me money for more IPs in the next year or so anyway.

Any views out there?

Thanks in advance everyone
(P.S. Beware of more than three properties on the one title - the lenders don't like it)

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Reply: 1
From: The Wife


I think your stuck, I hope Rolf can help you out. I brought a block a couple of years ago, for a very cheap price, and the vendor gave me his newly done independent valuation, which was almost double what I paid for the property, based on this, my bank loaned me 95% on this particular property, BUT I had to do a lot of pleading and whineing and wheedling to get it, and they wont do it again in todays market, banks arent interested in being creative or flexible right now, I would say because they dont have to be, theres PLENTY of business out there, they can pick and choose.

I hope someone can prove me wrong! Theres a lot of finance institutions that SAY they will do this or that, but dont actually come to the party when the time is due.

Good Luck! If it can be found, Rolf will find it for you, ( no pressure Rolf :eek:)

Cheers, TW
~Before you criticize people, you should walk a mile in their shoes. That way, when you criticize them, you're a mile away. And you have their shoes~
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Reply: 1.1
From: Rolf Latham

Yeah TW

No Pressure at all :O)

You know theres a funny shift in the market where one Lender will give you 400 k at 95 % and another says we wont even look at it above 80 %. Both lenders are part of the big 4 and the rates are not substantially different.

The difference is purely in the assessor and whether he/she takes an adversorial role to protect the banks position - ie lets find a way we can knock this back. Whereas those that are encouraged to build the banks business will find a way to do the deal.


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