Can this deal work?

[moyjos]

Hi all.

Looking for some advice. Here is the story (excuse the novel)

Hubby and I have a unit on the Sunshine Coast that is our PPR (Current equity around $55K)

I am self employed earning around $50K
Hubby is also self employed (but in a rapindly growing business) currently earning aorund $50K as well
My earnings won't change much in the future but hubby's is increasing very healthily and at the current rate will double in the next year.

We currently lease business premises (lease is nearly up) and are looking at purchasing a factory unit to run the business from. We have found a suitable property( Asking price $495K - 248m2) that is too big for our needs at present. It is on a corner block and can be easily walled off for our use and then sub-let the rest. (Hubby is tradie so this is not a big deal)

I have done the budget and am happy we can service the loan BUT (isn't there always a but ) With all I have read about commercial valuations not coming up to value and with the limited equity in our PPR is there a loan option available to us??

Thanks in advance
Cheers
Sue

 

[Rolf Latham]

Hiya Sue

Im not much of a commercial broker...........but I think shed be a bit tight, most lenders will want 25 to 35 % equity in the deal and then theres stamps.

ta
rolf

 

[Qlds007]

Hi Sue

You may get 85% LVR if everything else stacks up ok but still might be a little short as I assume your equity is the difference between the loan amount and your estimate of the valuation.

Remember a lender will only lend a percentage against that valuation so your accessible equity will be less.