Financing Block of 5 units inner west of Brisbane

[God_of_Money]

Hi SS Broker

I am thinking about making an offer to buy a block of 5 units (non strata titled) in the innerwest of Brisbane.

The asking price is A$ 1,2 million. I have A$300k in cash and A$ 130k in LOC
with ANZ (interest rate = 4.78%) making LVR ~65-70%. My current PAYG income is ~340k

I am keen to avoid financing it through commercial rates. Adelaide Bendigo bank is no longer offering loan of multiple units at residential rates.

Any chance I can finance it at residential rather than commercial rates.

Thanks

 

[Rolf Latham]

Id try someone like Wide Bay.

probably wont get to 80 % but not far off and the rates arent too bad.

WB have an interesting and logical way of applying credit

Heritage Bank used to be ok for these as well up to 80 but like ABL have gone soft on this type of security

ta
rolf

 

[Shahin_Afarin]

Are the units fully self contained?

I have done 2 with RAMS one at 70% and the other at 80%. They do 5 pack but it depends on the strength of the application when determining the LVR.

The big variable is going to be the valuation and perhaps the lack of comparable sales.

 

[Jamie M]

Any chance I can finance it at residential rather than commercial rates.

Thanks

You're in the GC - Rolf's in the GC. Seems logical to give him a buzz and ask if he can assist.

Cheers

Jamie

 

[RPI]

You're in the GC - Rolf's in the GC. Seems logical to give him a buzz and ask if he can assist.

Cheers

Jamie

All 3 of above are great brokers, but considering you could chat to Rolf in person I agree with Jamie

 

[Marty McDonald]

Are we 100% that Adelaide Bank is out funding this market (via their mortgage managers). I was speaking to a BMM rep the other day and he seemed to think they were still doing it.

 

[Qlds007]

Hi Donald

Hate to say Wide Bay are also out the market especially at the 60% plus mark.

Rates are so so but you can do just as well with a Commercial lender albeit on a reduced lvr.

Yes Marty Adelaide Bank thru their MM are definitely out.

With this particular block comparable sales are not going to be easy to find.

Cheers

 

[Mick C]

Widebay still does 5 ( but metro areas only at 65% lVR and case by case- ie strong financial) ....wide bay use to dominate in this field and we use to do min 4-5 loans per month with them! everything changed when their head of credit retired last year after 40 years with widebay -he was the one that wrote the " old" credit policy for wide bay...

If it's self contained and a block of 5 innerwest of Brisbane, LVR of 65-70% do-abe at resi rate. Valuation and comparable sales will be your only concern.

 

[God_of_Money]

Thanks for all the opinions.

I discussed with Investec/BOQ specialist. They can offer me commercial loan with the rate of 4.99-5.09% with NO additional security with 65%LVR. Valuation will not be an issue at 65% LVR

Direct quote from them.... "Also we have no line fees or ongoing monthly or annual fees so the rate is as quoted, plain and simple"

 

[Rolf Latham]

Just chasing approval for 5 OOT at 70 % LVR for a rate of 4.65 and a 400 annual with wide bay

BUT obviously the lvr will depend on the quality of the asset and the strength of the borrower

ta
rolf

 

[God_of_Money]

Just chasing approval for 5 OOT at 70 % LVR for a rate of 4.65 and a 400 annual with wide bay

BUT obviously the lvr will depend on the quality of the asset and the strength of the borrower

ta
rolf

That is nice 4.65% with stand alone security with Wide Bay

If I refinance all my IPs with BOQ specialists, they can go down to 4.6% for all properties with 1 package fee

 

[Rolf Latham]

If I refinance all my IPs with BOQ specialists, they can go down to 4.6% for all properties with 1 package fee

good rate and low fees

what are the risks /concerns that you may have with something like that ?

Let me get you started.


Concentration risk


( unless we are talking 80 % lvr and loans under say 1.2 mill in general)

ta
rolf

 

[Qlds007]

Donald i think we could get the rate down to less than that if you were looking at refinancing your entire portfolio especially given your occupation.

Cheers & Merry Christmas

 

[SK Investments]

Donald i think we could get the rate down to less than that if you were looking at refinancing your entire portfolio especially given your occupation.

Cheers & Merry Christmas

A mortgage broker suggesting to refinance an entire portfolio with one lender for the sake of a rate saving

Goes against everything I've read.

 

[Qlds007]

Not really SK Investments depends totally on the clients own situation.

Of course a matter of knowing your client and given that GOM has been a client of mine for 10 years i think i know what is right for his own situation.

Cheers

 

[lowiq]

This is probably going to be a silly question.

What are the risks of concentrating all your loans with one lender ?

Just trying to figure out what are the "concentration risk"?

 

[Jamie_]

Not really SK Investments depends totally on the clients own situation.

Of course a matter of knowing your client and given that GOM has been a client of mine for 10 years i think i know what is right for his own situation.

Cheers

Odd that someone who's been a loyal client of 10 years would feel the need to publicly get a second opinion from other brokers? who did he not bother to ask you?

 

[Waldo]

Odd that someone who's been a loyal client of 10 years would feel the need to publicly get a second opinion from other brokers? who did he not bother to ask you?

Maybe this is how they communicate? Through the open medium of public forum?

 

[Qlds007]

He did Jamie but as i am in St Anton he also posted it on the forum.

If i went to a doctor and didn't like the diagnosis i would still look at getting a 2nd opinion.

Maybe someone with your vast number of posts and property experience could have commented on the topic.

Cheers

 

[caferacer]

I know second tier lenders got a a lot of business during the GFC as the big banks started reducing their lending margins and started revaluing assets to reduce exposures.
If you can 4.65% on 5 units I think that is a great deal, is this a standard resi product or are you on bank bills.
Some people pay a bit higher interest rate to have a dedicated manager who knows what they are talking about - just depends on what you are after.