Should I Buy A Heritage Listed Property?

Any general questions you might have in regards to loans and finance.
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gleeson
Posts: 58
Joined: Mon Jun 15, 2009 12:15 pm

Should I Buy A Heritage Listed Property?

Post by gleeson »

Hello there,

I have recently come across a heritage listed property that I am interested in purchasing. I own other properties and my finance isn't a problem.

I have never dealt with a heritage listed property before and would like to find out a bit more before committing to the purchase.

The property is in Sydney. The property is classed as heritage under cultural value.

What I would like to know:
  • How much can I borrow?
  • Is it more difficult to get this type of loan approved?
  • What kind of restrictions are there in place for a heritage listed property?
  • Is there any other information I need to know?
Thanks!

Gleeson.

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Should I Buy A Heritage Listed Property?

Post by Otto Dargan »

Hi Gleeson,

Heritage listed property loans can be more difficult to get approved than a standard property. To get a better understanding of heritage listed loans have a read over our heritage listed property page.

How much can you borrow?
Most banks restrict borrowing on heritage listed properties to 80% and sometimes as low as 70%. Banks will look at loans up to 95% on a case by case basis only.

How to get your loan approved?
This type of loan can be more difficult if you do not receive the correct information. If you are in a good financial position and have a substantial deposit the loan will be more favourable to banks.

What are the restrictions?
The main restriction is the loan-to-value-ratio (LVR) restrictions. This restriction is in place as heritage listed properties are seen as unusually security to the banks, meaning they will take longer to sell.

You are also restricted in the number of banks that will accept heritage listed properties as security.

The key information you need to know is that you will need a larger deposit than what you would with a standard security, and you are limited in the number of banks that will accept your loan.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

gleeson
Posts: 58
Joined: Mon Jun 15, 2009 12:15 pm

Re: Should I Buy A Heritage Listed Property?

Post by gleeson »

Hi Otto,

Thank you for your information!

If I do not have a 20-30% deposit for the purchase would I be able to use the equity in one of my current properties? My properties are not unencumbered but there is a lot of equity in them, would this help me?

The heritage listed property I am interested in is asking 450k what kind of equity would I need to be able to complete the purchase?

:)

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Should I Buy A Heritage Listed Property?

Post by Otto Dargan »

Hi Gleeson,

You are able to use the equity in your current property under an equity loan. You can also cash out on your loan to gain the funds needed to complete the purchase.

These types of loans can be tricky to understand. Discuss your situation and options further with one of our brokers. You can call 1300 889 743 or enquire online with us.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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