Rooming House

Discussion in 'Property Finance' started by lil85, 13th Feb, 2019 at 4:25 PM.

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  1. lil85

    lil85 Member

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    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

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    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

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    would u have other properties with equity where u can do a cash out ?

    ta
    rolf
     
  4. lil85

    lil85 Member

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    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

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    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.