Property classification

Hi,

I am currently considering purchasing an investment property which has a detached retreat / office behind the main residence.

Would anyone know if the property will be deemed a multi-dwelling by the bank?

The structure at the back is classed as an office/retreat by council.

Many thanks in advance.

 

Likely that it won't be classed as a multi dwelling, even if it was there would be no issue with financing it.
Why the concern?
Is it fully self contained, ie. bathroom, kitchen included? Or just a stand alone room?
For best chance of finance approval I recommend using a broker.

 

Thanks for the reply Lindsay.

It is annexed / connected to the garage; it does have a kitchen and toilet.

I was told that some banks will only lend a maximum of 70% LVR for a multi-dwelling.

This is what has me concerned.

Would removing the small kitchen and bathroom before the valuer inspects the property be of any benefit?

Thanks again!

 

No benefit in removing the kitchen and toilet.
2 properties on one title isn't an issue for most lenders in any case, although unlikely it's classed as another dwelling due to no bathroom, just a toilet.
Just use a broker for your finance and you'll be fine

 

Thanks Lindsay!

I'll contact a broker.

 

Lindsay is a broker