qusetions about loans for multiple occupany properties

Any general questions you might have in regards to loans and finance.
lost_kombi
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Joined: Wed Jan 06, 2010 2:34 pm

qusetions about loans for multiple occupany properties

Postby lost_kombi » Wed Jan 06, 2010 3:09 pm

Hi. We currently rent in Tasmania but have recently decided we would like to buy. We have been thinking about moving to the north coast of NSW, particulary to a Multiple Occupancy-type property of a few acres which seems to be a relatively cheap way to aquire the use of some land to gain a level of self sufficiency surrounded by like-minded people. However, most that I've seen just looking on the internet are Company Title or Community Title, it appears that as you don't actually own the land, just the right to use it (if I understand it correctly!?) and getting a loan is difficult. We are just begining to save, but would like to know, besides the more the better (!), how much we should be aiming for minimum to make getting approval for a loan easier? Is it even possible to get a loan for such a property? Your website mentions loans are availiable for company title Flats, is it the same for company title Land/houses? Neither of us have ever owned propperty before, so can the 1st home owner's grant go towards it?
We would buy somewhere with a livable house/shack already on it with the intention of building our dream home at a later date. Is it even possible to borrow to build, as wouldn't thet mean borrowing more than the property in worth? I must sound completely ignorant but am just starting out and would be grateful for any info.
Thanks.

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Otto Dargan
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Re: qusetions about loans for multiple occupany properties

Postby Otto Dargan » Wed Jan 06, 2010 3:15 pm

Yes financing company title & community title properties can be a little tricky. Unfortunately it is very difficult for me to say with any certainty exactly how much you could borrow for this type of property. Because this is a relatively unique type of property I would need to get the full details and then talk to several lenders credit departments to see if they can consider it. I would estimate that for some properties you would likely be able to borrow 80% and in some cases 85%. For community title 90% may be possible depending on the property.

If it is normal company title / community title then you do own the property so no problems there.

If it is leasehold (pay site fees / lease the land) then there is no finance available in Australia. Sorry!
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