Will buying a commercial property affect the servicility of residential?

Hi everyone

I have got some residential investments and now want to buy a commercial. May I ask will it affect my servicility if I want to buy more residential later on?

 

Considering that CIP will require a lower LVR (65-70% vs 80-95%) and produce a higher net return, it should impact positively (happly to be corrected ).

 

Thanks, the commercial will be under the trust account, do I need it declare it when I buy my next residential?

much appreciated

 

A few variables to consider

- depends on the loan term and yield of the commercial as most lenders will use around 60% of the rental.

- if you're buying under personal or company, some lenders don't take into account of companies liabilities.

 

Unless very high yield it would generally hurt serviceability - you would generally be borrowing the deposit too.

 

I don’t need to borrow for the deposit

 

You should be getting some legal advice on that!