Loan for Commercial Property under $250K

[goblin5566]

I was surprised that minimum loan most of banks lend was $250K. That mean property has to be atleast worth > $400K considering expenses.

We were looking to buy property for $330K. I guess there is stamp duty and gst.
Just seeing if anyone know if it is possible to get lower than that amount. From my understanding you need to pay 30% deposit.

I came across ANZ who only wanted 20% desposit and loan under 250K. However, they rate was over 7%.

Anyone know good mortgage broker?

 

[Brady]

What rate were you expecting to pay for a commercial property?

Is the loan being secured by a commercial property or residential?

 

[Corey Batt]

There's definitely lenders which will let you borrow sub 250k for commercial, and thankfully are reasonable choices outside of that niche.

Adelaide Bank minimum loan req is 150k, fitting well for your needs.

 

[goblin5566]

Thanks.
Adelaide bank is good. They dont publish rates though. Also 0.5% application fee. Is that normal?

What are typically interest rates? Eg. My home loan is around 5%. How much more would I expect to pay for commercial loan?

Redwood - Could you provide more info like name of lenders.

 

[Nigel Kibel]

Commercial

My only comment is to be a little careful with cheaper commercial properties. Generally the entry point for quality commercial property is a lot higher than residential. Cheaper properties can be hit hard in a down turn.

 

[Corey Batt]

My only comment is to be a little careful with cheaper commercial properties. Generally the entry point for quality commercial property is a lot higher than residential. Cheaper properties can be hit hard in a down turn.

Very good point. Generally the returns/tenant quality/stability rapidly increases as the cap price rises. There is a very sweet spot between the price range too expensive for most private investors and too low for institutionals, where you can snap up A+ investments.

 

[eggnog]

What price range is this sweet spot in?

 

[Rolf Latham]

3 to 6 in our clients experiences


Ta
Rolf

 

[Shahin_Afarin]

Im assuming its a vanilla security i.e shop, office, etc?

If so then your best bets are Suncorp or ING. They are excellent in this market.