Commercial loan, residential collateral

Hi everyone,

I am about to purchase a housing accommodation in Brisbane inner city. Short term, long term tenants, daily to annual. With certification as a business.

I am a foreigner holding Australian PR, but my wife and kids are Australians. So no problem with FIRB. I am doing business overseas but I can’t provide my current income statement.

The purchase price will be around 2.5 m including all costs, and I have 1.6 m in savings. I am looking to borrow 1 m so that I will have 100 k in running capital. The land value for the property itself is around 1.6-1.7 m. The income for this property at the moment (covid hit) is comfortably enough to cover the costs even after borrowing 1m.

Please PM me if you can help and need further questions.

Thanks in advance.

Muli

 

What sort of property is this? It doesn't sound residential?

 

Commercially approved residential property.

 

That's a pretty vague description that could mean nearly anything. What's the actual security?

 

Just an on-site manager.

 

it’s actually zoned residential but rooming accommodation is allowed.

 

Looks like you would need commercial finance

 

Prob looking at 50% LVR. but you will need a low doc - which is unlikely to be possible

 

Yup, leverage is less than 50% and low doc is fine. But why is it not possible?

 

Noted.

 

because you are a non-resident and self employed. No lenders willing to lend - that I know of.

 

Can’t I just use the projected future earnings of the property?

 

no

 

Hi Mulianto, are you borrowing under a company name or personal name?

 

Family trust with corporate trustee

 

Ok, I work for a non-bank corporate lender and I can ask internally if we can provide a loan for you. Is that what you are after? If so, I need more information. Could you provide your email so I can email you the information I need?

 

Might need a private lender.. interest rates are not going to be cheap though..

 

Got approval from La Trobe for 4.5% variable. 5 years review, 25 years loan.

Now, is this lender reliable? Since they don’t offer fixed rate, they can increase the rate overnight to whatever rate they want?