Rooming House

Discussion in 'Loans & Mortgage Brokers' started by lil85, 13th Feb, 2019.

Join Australia's most dynamic and respected property investment community
  1. lil85

    lil85 Member

    Joined:
    2nd Aug, 2015
    Posts:
    19
    Location:
    melbourne
    We want to build a rooming house with 9 self contained bedrooms. I heard it has to be a commercial loan.
    Is there any commercial loan that only lends for the build, and let us stay with the current loan for the land?
    And look at the expected rental income only, without looking at our other income?
     
  2. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,764
    Location:
    Melbourne
    No.

    Lenders don’t like to share, so you can only have one loan per ‘security’ or one mortgage per property.

    They need to assess your total income and expenses. The only exception might be in the commercial space where the title is in a company name.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    4,760
    Location:
    Gold Coast
    would u have other properties with equity where u can do a cash out ?

    ta
    rolf
     
  4. lil85

    lil85 Member

    Joined:
    2nd Aug, 2015
    Posts:
    19
    Location:
    melbourne
    already used up to purchase another land. Now is looking to build on that land.

    Would commercial loan have easier serviceability calculation than residential?
     
  5. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

    Joined:
    18th Jun, 2015
    Posts:
    20,280
    Location:
    Remote
    You will need to supply security for a loan, usually, and the security is a mortgage over land - with a build attached to it sometimes. The building goes with the land.
     
  6. Reddy

    Reddy Active Member

    Joined:
    25th Feb, 2018
    Posts:
    26
    Location:
    Melbourne
    Has anyone gone through rooming house process yet ?
    Can anyone kindly share pros and cons of the Buiding a rooming house please ?

    Thanks in advance