Hi all
I'm wanting to get a sense check of how sustainable it is to keep getting I/O lending...
1. I/O lending residential lending for a portfolio of around $2.5m, LVR at 60%.
2. I/O lending on a commercial property valued around $1.5m with LVR at 60%.
I residential or commercial both becoming similar in regards to how long you can continue the lending on I/O? Or is resi more favourable for I/O and by what factor? At what point might the banks start to ask for P+I payments?
I'm aware that the usual amortisation period for commercial is 15yrs which is half that of resi, but if you can keep rolling commercial from lender to another on I/O then that changes how I could approach my cashflow goals. Eventually (in approx 10yrs) I would like to reduce the commercial debt through selling down some residential property, but in the meantime I'm wanting to maintain high cashflow.
How many investors who have commercial are on I/O and successfully continue to roll the loan terms over on I/O?
Really appreciate your views on this.
I'm wanting to get a sense check of how sustainable it is to keep getting I/O lending...
1. I/O lending residential lending for a portfolio of around $2.5m, LVR at 60%.
2. I/O lending on a commercial property valued around $1.5m with LVR at 60%.
I residential or commercial both becoming similar in regards to how long you can continue the lending on I/O? Or is resi more favourable for I/O and by what factor? At what point might the banks start to ask for P+I payments?
I'm aware that the usual amortisation period for commercial is 15yrs which is half that of resi, but if you can keep rolling commercial from lender to another on I/O then that changes how I could approach my cashflow goals. Eventually (in approx 10yrs) I would like to reduce the commercial debt through selling down some residential property, but in the meantime I'm wanting to maintain high cashflow.
How many investors who have commercial are on I/O and successfully continue to roll the loan terms over on I/O?
Really appreciate your views on this.
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