finance

[WebBoard]

From: R S


Hi!

Would anyone know where I can get 95% finance for an investment property? The property has 4 units (side by side)in 1 block. Banks would only lend me 70%.
It will be greatly appreciated!!

thanking you in advance,

Reynaldo

 

[Peter_Tersteeg]

Reply: 1
From: PT Bear


There's a number of reasons why a bank would only lend you 70%. A common reason usually is that they consider it a commercial loan. The property you've mentioned may be considered commercial.

For a residential loan, most banks that I've talked to will go to 90% as long as you can service the debt. If they only loan to 70% there's probably a good reason, usually because of a risk factor involved.

Ask the lender for specific reasons why they won't go to 90% in your case. There's often plenty of things you can do to change the way a lender looks at an application. People here are usually very willing to share this sort information.

PT_Bear

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Hi Reynaldo

Multiple dwellings on one title are usually a max of 70 % LVR, that is because there isnt a lenders mortgage insurer that will cover these loans.

A strong applicant set up the right way can get 80 %.

Ta


Rolf

 

[WebBoard]

Reply: 2.1
From: R S


Thanks guys!

But can someone suggest where I can get 95% finance? It's a residential property. I found few banks that can lend me 90% but I only can service 5% deposit.

thanking you once again

Reynaldo

 

[Robert]

Reply: 2.1.1
From: Robert Forward


Hi Reynaldo.

Talk with Rolf about that, from memory ANZ will do a 95% lend. But then that is just from memory. Rolf will know more.

Here is his website.

http://www.asapfinancial.com.au/store/default.inetstore

Cheers
Robert

The Sydney "Freestylers" Group Leader.

 

[Rolf Latham]

Reply: 2.1.1.1
From: Rolf Latham


Thanks for that Robert

Unfortunately No One will do a 95 % over mutliple dwellings on one title. If you can get 90 % Reynaldo, take it and run, but check the fine print first.

One of the reasons that multiples on one title are significantly cheaper than singly titled units is that the in-cost is traditionally 3 to 5 times that of separate strata titled units. Hence 4 and six packs have much higher rental returns but the cash on cash return is not so flash.

Ta

Rolf

 

[WebBoard]

Reply: 2.1.2
From: Dave


Hi Reynaldo.

I know a mortgage originator who lends 95%...including for Melbourne and
Sydney CBD apartments. Call me on 0416 054 499.

Cheers,

Dave


p.s. And I don't mean at 'no docs' rates either.

 

[Rolf Latham]

Reply: 2.1.2.1
From: Rolf Latham


Hi Dave

What ? on a non strata block I'll definately have to call you !

Ta

Rolf

 

[yuch.]

Reply: 2.1.1.1.1
From: Yuch .



Hi Rolf,

>>One of the reasons that multiples on one title are significantly cheaper
than singly titled units is that the in-cost is traditionally 3 to 5 times
that of separate strata titled units.<<

What kind of costs are involved to make it 3 - 5 times that of strata
units?

Regards,

Yuchun Chen
Market Management Systems
NEMMCO Ltd
(02) 8838 5042

I am the Master of my FATE, the Captain of my SOUL, but a Slave of my
STOMACH






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[WebBoard]

Reply: 2.1.2.1.1
From: Donna Larcos


Rolf,
Can you run that by me again? what are
the increased costs with an in-line block?
Anyone know what it costs to strata a
block?

D

 

[WebBoard]

Reply: 2.1.2.1.1.1
From: R S


Thanks a lot guys!!!

I appreciate all the advice!!

Reynaldo

 

[Rolf Latham]

Reply: 2.1.1.1.1.1
From: Rolf Latham


Hi Yuch

Cash on Cash return is demolished since you need up to 6 times the deposit based on 95 % vs 70 %, ignoring LMI costs, which can be capitalised in some cases.

Ta

Rolf

 

[Rolf Latham]

Reply: 2.1.2.1.1.2
From: Rolf Latham


Hi Donna

I shluld have been specific in my terminology based on cash on cash reteun, see my reply to Yuch above.

Ta

Rolf

 

[WebBoard]

Reply: 2.1.2.1.1.2.1
From: James Doherty


HI There.
If your after 95% finance try RAMS, CITIBANK, ANZ (depends who you speak to), Suncorp Metway.
Regards
JAD