Multiple Unit Dwellings - Flats

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From: Glen Monahan


Hi, would like to hear from anyone that has purchased blocks of flats with a view to Strata Title down the track. Also, would this be classed as a commercial deal by banks. I was told by a NAB manager that they would not do an interest only loan on commercial property. If it had to be P&I its not worth it.
Thanks.

 

[Rolf Latham]

Reply: 1
From: Rolf Latham


Hi Glen

Huge variability here.

Most lenders will do 70 and I/o

Some will do 80 % at i/o for a "strong" applicant.

And as you have found some want to do a commercial loan over 10 years.

Other things to look out for are State based planning laws that may disallow a strata conversion. Here in NSW Sepp 10 is doing exactly that in a lot of areas. Sepp 10 deals with affordable housing.

Ta

Rolf

 

[WebBoard]

Reply: 1.1
From: Glen Monahan


Thanks Rolf,
finance might be a tough one. I'll sound out the seller for vendor terms for 1 to 2 years and use rent & improved value to go for finance later.

 

[Rolf Latham]

Reply: 1.1.1
From: Rolf Latham


Go get em

Rolf