Multiple Dwellings on a Single Title: The Basics
The Australian housing market provides several investment opportunities including purchasing multiple dwellings on a single title. For the investor, this situation can net an attractive income stream. Lenders look at the venture differently. For the investor to maintain their income stream, each dwelling must remain occupied. Otherwise, it’s a loss on paper. Vacant units impact an investor’s ability to repay their debt.
Lenders will fund this real estate investment opportunity. However, they take several elements into account. For example, they look at market saturation in the area. They also look at how similar properties continue to perform in the same market. By taking a look at market data and forecasted performance, lenders determine if the property makes a good investment.
Once lenders feel comfortable financing the endeavor, they take a look at other factors. The number of dwellings, their sizes, and location determines to loan-to-value ratio. In most cases, lenders prefer to lend an 80% LVR. Investors who place a 20% deposit toward the financing have skin in the game. Keep in mind that several ways to finance the 20% deposit exist. For example, they can leverage the equity from their portfolio. They can also bring a guarantor into the picture.
Mortgage House is a non-bank lender. We partner with investors to finance multiple dwelling purchases. Our team has the tools to evaluate the project and offer competitive loan terms.
Multiple Dwellings on a Single Title Conclusion
Mortgage House finances ventures that include multiple dwellings on a single title for investors. To start the application process, investors can contact our loan specialists today.