No, that’s not a typo; no other property tied in, and no smoke & mirrors!
There can be some incredible lending deals on commercial owner-occupied properties suited to small businesses, with LVRs of 80% and even higher – and that’s through banks!!
If you currently rent your business premises, which you could buy for less than $2m but haven’t considered buying because you’ve assumed you need a 30+% deposit, talk to us today.
Anthony Mack recently negotiated this deal for a mortgage broker (yes, even other brokers use us!) purchasing a shopfront property in the inner-Brisbane suburb of Ashgrove with a massive 91% LVR!! The lending was structured with 70% interest only, and the balance was repaid over five years.
Although rates have been rising (and very quickly), it’s important to remember that in a high-inflation environment, many commercial & industrial rents are getting pushed up significantly – so the value equation can still be powerful. Although the monthly repayments will usually be more than the rent, you would pay – a good chunk of that is principal repayment, i.e., forced saving, which will ultimately result in you paying off an asset that builds your equity position.
If the idea of owning your own commercial premises sounds interesting, contact us today for a no-obligation conversation about what the numbers might look like and whether it might be possible for you!
