Currently most of the Banks will lend up to 60%
of the purchase price with the residence and business standing
as sole security.
Equity
Customers’ equity to be 40% of the total purchase price
which includes allowing for the industry standard of 5% for total
ingoing costs.
As an example - Manager’
Unit: |
|
$400,000 |
Rights: |
|
$600,000 |
|
|
$1,000,000 |
Costs: |
|
$50,000 |
|
|
$1,050,000 |
|
|
|
Less – Customers’ equity: |
|
$420,000 |
|
|
$630,000 |
- $420,000 – being 40% of $1,050,000.
- Equity can be cash.
- On the proviso there is a comfortable level of income equity
can also be:
- Your equity held in a property.
- Property must be residential.
- Funding against that property can not exceed 80% of
the Banks’ value of that property.
- Funding for the equity will be via a bank residential loan.
Loan Structure
The intent of the load structure is to reduce the overall debt
to the market value of the managers’ unit within the term
of the original agreements but not exceeding 15 years.
|
