Multiple Unit Loans

2010 March 10

Investing in real estate in Australia is usually a low risk proposition.  Over the years, real estate prices in Australia have been gradually on the rise, hence, those who have invested in real estate have made good profits.

One option for investors is to invest in multiple units.  Purchasing multiple units to lease or resell depending on the area and value of the property may be a good investment.  With property prices continually rising after the recession, it might be the perfect time to invest.  What other way to invest than by buying multiple units.  These multiple units can be leased out or resold at a profit, and the return on investment should be fairly quick.

However, not all banks and lenders are willing to grant a borrower a loan to purchase multiple units.  Of course, since it is an investment, risk of losses on repayments are generally higher.  This is coupled with the fact that whereas, single unit buyers would like to purchase the unit as a dwelling, and have other sources of income, multiple unit buyers usually have a regular business in investing in real estate.  If business goes bad, then repayments for all the multiple units are at risk.

Multiple unit buyers should also take into serious consideration the type of loan that they would like to make.  Generally, multiple unit purchases are considered to be commercial purchases, with the interest rates being pegged much higher.  However, it is possible to cut costs by getting a home loan, and purchase multiple units at the usual non commercial rate.  This can save the investor a lot of time and money.

You should be aware that not all banks and lenders will be willing to grant this type of loan.  Hence, it would be better to contact the experts on home loans.  These experts can direct the investor to a bank or lender willing to grant interest at lower rates, even if the purchase is commercial in nature.  Consult them to get your

multiple unit home loan approved.

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