From: Adam H.
Gday
I am a student who lives at home still and has no propertys. I just need a few questions answered so i can think about it more and plan better. What i would like to do when i finish uni is save up a deposit and get a commercial property that is either neutrally geared early on(ie first year or 2) then positive geared, or positively geared from day 1. What are the banks/financial institutions lending policies on commercial property? I have read that for residential property you can get a loan for 80% of the property value without mortgage insurance but with commercial propertys they only lend to 70% maximum. Is this true? Also can you get mortgage insurance on commercial property loans or only residential? If you can whats the maximum LVR level? And regarding GST, i have noticed that most commercial properties are gst exclusive. Does this mean that if i am an individual i pay the 10% then get none back? If i form my own company i get the 10% back from the ATO? Also if i form a compony with the goal of accumulating property will i find it much harder to get finance? Will the LVR limit be less, and will the interest rate be more? This is my first post. Be gentle. Thanks.
Pele.
Gday
I am a student who lives at home still and has no propertys. I just need a few questions answered so i can think about it more and plan better. What i would like to do when i finish uni is save up a deposit and get a commercial property that is either neutrally geared early on(ie first year or 2) then positive geared, or positively geared from day 1. What are the banks/financial institutions lending policies on commercial property? I have read that for residential property you can get a loan for 80% of the property value without mortgage insurance but with commercial propertys they only lend to 70% maximum. Is this true? Also can you get mortgage insurance on commercial property loans or only residential? If you can whats the maximum LVR level? And regarding GST, i have noticed that most commercial properties are gst exclusive. Does this mean that if i am an individual i pay the 10% then get none back? If i form my own company i get the 10% back from the ATO? Also if i form a compony with the goal of accumulating property will i find it much harder to get finance? Will the LVR limit be less, and will the interest rate be more? This is my first post. Be gentle. Thanks.
Pele.
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