Advice on purchase of flats

[JPM]

Geoff,
it was me who bought up the Overdraft business. I asked the bank to reval the property and give me a LOC on the extra equity and teir response was all they can do is give me an overdraft ( at big % too).

I was just saying that on my experience so far , that with commercial loans it's a little bit more tricky to get a reval to access the extra equity.

I would love it though if you could tell me that it's not as hard as I thought because it will be an issue for me in the future.

Must admit i haven't spoke to Rolf yet!!!!!

Regards,
Jason

 

[geoffw]

Thanks Jason.

My loan is not commercial- it's regarded by the bank as residential investment. It's only the LMI people who regarded it as commercial, anfd they're no longer in the equation, as long as the LVR is below 70%.

 

[handyandy]

Hi Jason

I recently revalued a block of 7 flats. They were originally financed through a standard St G loan. Not commercial.

They revalued and established a LOC (portfolio loan at just under 7%) valuing each flat at $200k. LOC is for $980k just to keep it under the $1mil.

Another block which is only 6 flats I am having trouble breaking out of the 'Commercial' classification. Originally financed through CBA and am looking to establish a new LOC. Various quotes forwarded by 2 different originators could only come up with commercial products.

So it seems very much who you talk to as I originally spoke to a home loan officer at the St George and that seems to have set the trend.

Cheers

 

[JPM]

Thanks for the info guys.

My bank calls it a 'commercial rate facility' and the rate is tied to the bank bill rate + margin.

I'd rather have it as a standard loan as they give me .6% discount.

I'll have to have a look around.


Regards,
Jason

 

[paul2k]

Hi All,
Thanks for the extra info. I spoke to my Banker @ NAB today who told me that they would consider a reval within a year under special circumstances. Perhaps it's a coat of paint, sub divide or something like that.

That maybe of help to those with NAB.

regards

Paul

Originally posted by JPM
Thanks for the info guys.
My bank calls it a 'commercial rate facility' and the rate is tied to the bank bill rate + margin.
I'd rather have it as a standard loan as they give me .6% discount.
I'll have to have a look around.
Regards,
Jason

 

[Rolf Latham]

Hi Paul

Being the realist that I am the special circumstance is if they think the value has gone down :O)

Ta

rolf

 

[Aceyducey]

Paul,

That's also not a commitment, it's a comment....

Get it officially in writing at least and even then a bank always reserves the right to say NO.

Of course, you can always change banks - don't underestimate your power, NAB makes no money if you take the loan elsewhere.

And you don't intend this to be your last purchase do you....future business can be a powerful tool.

Cheers,

Aceyducey

 

[paul2k]

Rolf & Aceyducey,
Thank your for the advice. I'll shoot off an email soon as I have got a bit of free time on my hand. It's really good having all this time to plan at the moment. Now I know why everyone would want to have a bit of spare time doing property = Planning!

Thanks for the advice, I feel like a kid coming into a world!

regards

Paul