rural land and hobby farms

[simonjulie]

From: Simon and Julie M


Hi all
Can anybody tell me what sort of deposit% the banks need for rural land and hobby farms?
Regards Simon

 

[WebBoard]

Reply: 1
From: Terry Avery


My loans manager tells me that the bank considers more than a couple of
acres as a non-residential size therefore the property would be on a
commercial basis. For commercial loans you may need up to a 40% deposit and
greater security. You may be able to negotiate a better LVR but shop around.

 

[yuch.]

Reply: 1.1
From: Yuch .


From memory, Commonwealth does 70% for rural land.

If it's a rural property or rural residential, then they lend up to 90%. Hobby farm, 90% as well.

Regards
yuchun
~ The secret to success is to start from scratch and keep on scratching. ~

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Hi Simon and Julie

Depends, my usual answer ?

Where is it, how large, town power, phone, road, have house on it.

You can get LVRs to 80 % and beyond if < 20/ 25 acres with house in sensible area.

Also comes down to what the overall deal is like, security of your income etc.

Ta

Rolf

 

[simonjulie]

Reply: 2.1
From: Simon and Julie M


Thanks everyone
The reason I wanted to know was my son was looking at rural residential land near Canberra and wanted info.
Great forum!
Regards
Simon