Buying an established accommodation business

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Hoa Hong
Mortgage Specialist
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Joined: Thu Aug 26, 2010 10:15 am
Location: Sydney, Australia
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Re: Buying an established accommodation business

Post by Hoa Hong »

Hi petad,

With the current security being a short term accommodation security, this would mean that we would need to put this with a commercial lender. When we approach commercial lenders, the maximum lending is usually around the 65% marker.

With what you are looking at doing, we would require a much larger deposit being about $525,000.

If you have a guarantor or other properties yourself, you can use it as security support to obtain more funding. Rate wise we are looking at about a 6-8% rate depending on the lender.

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