Hi All, looking at options for purchasing commercial property plus residential premises in one line. There are quite a few shops that come up in SYD with houses/flats on top or at rear and thought maybe an easier way to get into the market affordably (I wouldn?t say at a bargain as there are probably none in this market!).
From my initial research, I am being advised the LVR would likely be 60% if you want to finance under resi rates otherwise more if commercial loan but still only 65-70% LVR ? does this sound ok? It is obviously a lot of money (or access to it) to have when you factor in Stamp Duty plus other costs so maybe this is one of the reasons of having lower demand. Are any others familiar with buying these types of properties in the past to purchase at around $1.5M level and what kind of LVR?s/rates they would be getting? (looking for <4.5% for a resi loan ? would this be achievable?).
My concern is then is there enough demand or is this the reason why these shops plus resi maybe do not increase in capital growth as much as normal resi houses where normal mum and dad?s are competing to buy a house! The set-off is you obviously have more than one incomes and generally they are quite favourable
From my initial research, I am being advised the LVR would likely be 60% if you want to finance under resi rates otherwise more if commercial loan but still only 65-70% LVR ? does this sound ok? It is obviously a lot of money (or access to it) to have when you factor in Stamp Duty plus other costs so maybe this is one of the reasons of having lower demand. Are any others familiar with buying these types of properties in the past to purchase at around $1.5M level and what kind of LVR?s/rates they would be getting? (looking for <4.5% for a resi loan ? would this be achievable?).
My concern is then is there enough demand or is this the reason why these shops plus resi maybe do not increase in capital growth as much as normal resi houses where normal mum and dad?s are competing to buy a house! The set-off is you obviously have more than one incomes and generally they are quite favourable