finance on Company Title property

[Starofdavid]

I have been reading up on company title properties and notice their cheaper,some in Regional areas are as low as 100k.
After what i read im cautious to buy a C9mpany Title to have as a IP but is it easy to get finance for such properties?

Do lenders take caution at lending for Company title units?

 

[see_change]

We have two company titles units .

Not sure what the current state of affairs is , but in the past the banks wouldn't lend as much . We have 80 % LVR .

While they may be cheaper , the rents aren't cheaper , so potential higher returns .

Company title predated strata title so they will tend to be older .

Unlike strata title there is no obligation to maintain an adequate sinking fund , so if you come across one with low levies , it's just as likely to represent a lack of ongoing maintenance , a state of disrepair with the need of extra levies to cover costs such as rewording the building / potential plumbing issues .

We are currently having a " discussion " in our block after a stop c o c k failed during a renovation , resulting in minor water damage to the unit below . The upstairs owner was aware there was a problem with the stop cocks and had agreed to arrange to have them replaced ..... Sigh . The repair of the damage has revealed there is old wiring in parts of the building which will need to be repaired ......

Cliff

 

[Shahin_Afarin]

Lenders do not like company titles due to the risk in resale. As such some lenders don't accept them, most do it at 80% LVR (CBA, Westpac, etc) and some do it at 85% LVR (St George).

So definitely some restrictions there and consider this if and when you decide to resell because it would be equally as hard for the general market to finance (not everyone is going to have a 20%-25% total deposit)