LVR guideline criteria vs Occupancy ratio

Discussion in 'WebBoard Property Investor Forum Archive' started by lindsay_jones, 21st Sep, 2002.

  1. lindsay_jones

    lindsay_jones Member

    Joined:
    5th Oct, 2002
    Messages:
    4
    Location:
    Adelaide, SA
    From: Lindsay Jones


    What determines the LVR criteria used by the lending institutions ?

    Is it the occupancy ratio?

    high occupancy: long term rental tenant = 80% LVR

    low occupancy: overseas student rental = 50% LVR


    What could I expect the LVR criteria to be for a rental lease to company XYZ who would use it for their interstate executives ?


    Thanks
     
    Last edited by a moderator: 5th Apr, 2017
  2. Rolf Latham

    Rolf Latham Member

    Joined:
    2nd Mar, 2001
    Messages:
    18,791
    Location:
    Confused = Sydney, Brisbane and Gold Coast
    Reply: 1
    From: Rolf Latham


    Hi Lindsay

    Saleability of the security asset as percieved by the lender and or mortgage insurer. Note that this is not always the reality.

    If you strike a problem understand that different lenders have different attitudes to different types of security. Some may lend to to 80 % for certain types of serviced apartment for example, whereas some wont even touch them.

    Also,volatility of market is also an issue, and is one of the prime reasons that commercial properties rarely attract an LVR > 70%

    Ta

    Rolf
     
    Last edited by a moderator: 5th Apr, 2017
  3. pobrien3

    pobrien3 Member

    Joined:
    30th Sep, 2002
    Messages:
    48
    Location:
    Sydney
    Reply: 2
    From: Patrick O Brien


    The banks (or more importantly the mortgage insurers) have lists of postcodes which dictate whether they will lend in that area. This is related to the perceived saleability as mentioned by Rolf.
     
    Last edited by a moderator: 5th Apr, 2017