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From: Mike .
Commercial /home/investing loans?
From: Lesley
Date: 30 Jan 2001
Time: 09:25:41
I have been following this forum and others of the same content for some time now. I have read a lot on IPs and my husband and I are now in a position to purchase our first IP. We have found a set of 6 units in good location -1 street back from CBD . Red brick exterior, concrete block interior (very low main). Deal is as follows:
Purchase price - $300K neg
Rent 6 x $110 x 52= $34,320 PA
Cash +ve from day one including bank interest and expenses.
On approaching 2 major leading banks they have informed us that because it is a block of 6 units on freehold title we will have to go with a commercial loan. Has anybody else had this problem? Is it a problem? Is this the way to go or should we look to other leaders?
We have a lot of equity in residence $300K. We want to finance the whole IP 100%
To avoid paying Mortgage insurance should we take out one loan on the residence and the balance to finance the IP. OR take out the full loan on the IP, pay the insurance and therefore not have the IP connected to the res.? Any advice would be greatly appreciated.
Commercial /home/investing loans?
From: Lesley
Date: 30 Jan 2001
Time: 09:25:41
I have been following this forum and others of the same content for some time now. I have read a lot on IPs and my husband and I are now in a position to purchase our first IP. We have found a set of 6 units in good location -1 street back from CBD . Red brick exterior, concrete block interior (very low main). Deal is as follows:
Purchase price - $300K neg
Rent 6 x $110 x 52= $34,320 PA
Cash +ve from day one including bank interest and expenses.
On approaching 2 major leading banks they have informed us that because it is a block of 6 units on freehold title we will have to go with a commercial loan. Has anybody else had this problem? Is it a problem? Is this the way to go or should we look to other leaders?
We have a lot of equity in residence $300K. We want to finance the whole IP 100%
To avoid paying Mortgage insurance should we take out one loan on the residence and the balance to finance the IP. OR take out the full loan on the IP, pay the insurance and therefore not have the IP connected to the res.? Any advice would be greatly appreciated.
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