Resi or commercial loan

[barra]

Hi

Might be an obvious answer but I'm not sure.

I'm looking at purchasing a small vacant block in nsw zoned for light industrial use.

The land is around $200k and the construction I want to complete is $100k.

It is for personal use.

I would prefer not to contribute more than 25% if possible and my income will service the debt.

Would there be any way to get a residential home loan for this?

If not, what loan term, interest rate and lvr should I expect from a commercial loan?

Thanks for any input

 

[Rolf Latham]

very likley commercial, and vey likley needing 30 to 40 % down

rates in the late 5sto mid 6s

Most of the smaller guys that do ok lvrs and rates likeABL and ING wont like the locn or the build component, and no exist lease

ta
rolf

 

[albanga]

Pardon my ignorance for a complete lack of understanding about zoning but would it be possible to build a warehouse with a housing component and have the lender look at this more favorable?

My friends family have a meat business and the ground floor is warehouse which does include a shop front. Upstairs however is a 3 bedroom/2 bathroom huge living and kitchen really nice home.

 

[Rolf Latham]

My friends family have a meat business and the ground floor is warehouse which does include a shop front. Upstairs however is a 3 bedroom/2 bathroom huge living and kitchen really nice home.

if you can have separate titles for the 2 areas, maybe.

In general, most, bit not all lenders will take the worst case use or zoning position, especially so where there is a mixed use buisness and resi use


ta
rolf

 

[barra]

Thanks for the input

 

[Paul@PFI]

If its a business use for the site there is also the ability for a SMSF to own the premises and rent it to the business. Its also a good asset protection strategy. Even a SMSF loan but the LVR is low.

Too often I see ability to own the premises in a SMSF and its overlooked in the search for a lender.