Vendor finance or refinance options

[Malo]

Hi everybody im a long time lurker and this is my first post. My partner and I have been investing for seven years now and ive recently come across a block of units that we would like (4units on a torrens title). The only problem is we are just a week away from settling on another property. Now here is weere it gets interesting we have a 10% deposit + stamp duty + purchasing costs etc for the block of units from what ive researched you really need a 20% minimum but can you use equity or CC them to get it across the line. We were supposed to get valuations done on our other properties from our bank when our current IP property was going through the finance process unfortunately they didn't even end up doing it so in the current banks eye we don't have that much more room to move but weve done some research and think we would have more than enough. Is it time to break the loans up and split between banks or should we try and vendor finance the units? We have never VF and weren't sure of the best way to approach it. The units are been sold through an agency so obviously if they did accept a VF option the agency would be entitled to some renumeration for their work thus far. How did you agree on price and repayments etc. Sorry for the essay of a post its just our research indicates that it would be an awesome buy and we don't want to miss out. Melissa

 

[Terry_w]

How many units in the block? You may be limited to a lower LVR.

Finance finance is basically the vendor lending you some or all of the deposit. This is something the banks don't like, but it should not affect the agents commission at all.

 

[S.T]

Have you tried contacting one of the many expert mortgage brokers on this forum to see if you can go with a different bank for the units?

 

[Corey Batt]

90% LVR on 4 units on 1 title is fine with the right lenders - would just need to confirm you have the correct serviceability/security. No need to muddy the water with vendor finance etc.

 

[Redom]

General guidelines:
Block of 2-3 units: potentially 95%
For a block of 4, 90% can be done (security/servicing limits apply).
6-8 units: 65-75%
Any more: case by case, 65% or under.

I'd be doing more research and talking to the right people to try and get the deal over the line in the simpliest fashion.

Valuations are generally an issue - this could tank a multi-block purchase.

Cheers,
Redom

 

[Shahin_Afarin]

CBA = 95% including LMI for 4 units on a single title provided loan amount is under a mil.

The problem we generally see is lack of comparable sales for a 4 pack and this in turn will have an affect on either the valuation amount or risk rating or both.

 

[Jamie M]

Agree with Shahin - whilst 4 on 1 at a high LVR is a possibility....it's the valuation that can cause grief.

Cheers

Jamie

 

[Rolf Latham]

We were supposed to get valuations done on our other properties from our bank when our current IP property was going through the finance process unfortunately they didn't even end up doing it so in the current banks eye we don't have that much more room to move but weve done some research and think we would have more than enough. Is it time to break the loans up and split between banks

As an aside ............. if u can do that without breaking fixed rates at bad cost, or having to pay new LMI, when would NOW be a good time

ta
rolf