Financing a block of units

[Iggy_Type_R]

Hi,

If I buy a block of 12 units, but each has it's own title, can I finance it (probably with 4 differnet lenders) as a residential loan by getting 12 facilities? Do I need 12 contracts of sale?

Thanks in advance

Iggy

 

[Rolf Latham]

Hiya

Yes you can do them separately. If you do then you will require each on a seprate contract usually.

Many buyers will bulk 2 or 3 into the one loan to avoid too much paperwork but still get the result of a standard residential loan.

ta

rolf

 

[GoAnna!]

The vendor's solicitor may also require a Heads of Agreement to ensure that you settle on ALL rather than just some of the apartments. This agreement ideally woudl not be referred to on the individual contracts and does not need to be supplied to the bank )

 

[Iggy_Type_R]

Thank you for your very insightful replies

Another question tho: if I buy a block that is on one title, and I have a 6 month settlement say, can I strata it before settlement?

 

[Rolf Latham]

Hi

Yes, but could be a risky proposition depending on whats required.

I have heard it is possible in most states to substiture many contracts for one.

ta

rolf

 

[rossv]

Hi,

A couple of points to consider.
to strata you will need the owners (vendor) consent and signature for the DA etc
As with many strata conversions you will need to do fire work etc and therefore will need vendors consent to do these works.

And don't assume you can get strata approval within 6 months, it can take longer and will probably require approval from the owners mortgagee.
Also different amounts of stamp duty will apply depending on wether there is 1 contract or several.

regards


rossv

ps: one other thing comes to mind ..you will be paying alot higher rates when on single titles
go for it!