Is purchasing a block of flats a silly thing especially on property finance side?
Hi all,
I have be a reader of this forum for the last 3 months and I’m in serious need of some advice on the investments of a block of flats a friend told me was a good investment. I did my sums on the return but left out the most important detail which is the finance.
I have a PPOR worth $240k with no debts, a LOC of $60k and settling on a the block of flats which cost $400k. Here is the crunch, the bank (NAB business) would only loan me up to 70% of the property.
My calculations had costed 80% LVR and not 70%. Stamp duty is $20k and I have been reading up on how to purchase a property but forgot to read the how much $ can borrow section. I have picked up the correct property as it is going up but just realize what a corner I have put myself into with the finance.
I have $40k set aside for the deposit however I feel that my situation requires a financial wizard to assist me in the quest which is due in 2 weeks time.
Hi all,
I have be a reader of this forum for the last 3 months and I’m in serious need of some advice on the investments of a block of flats a friend told me was a good investment. I did my sums on the return but left out the most important detail which is the finance.
I have a PPOR worth $240k with no debts, a LOC of $60k and settling on a the block of flats which cost $400k. Here is the crunch, the bank (NAB business) would only loan me up to 70% of the property.
My calculations had costed 80% LVR and not 70%. Stamp duty is $20k and I have been reading up on how to purchase a property but forgot to read the how much $ can borrow section. I have picked up the correct property as it is going up but just realize what a corner I have put myself into with the finance.
I have $40k set aside for the deposit however I feel that my situation requires a financial wizard to assist me in the quest which is due in 2 weeks time.