First Point Group recently facilitated the $6M purchase of a 40-unit residential apartment block with 20 car spaces in Melbourne’s inner northern suburbs. The purchase was made by a new Unit Trust, with unit holders comprising two Discretionary Trusts, each with two Beneficiaries. All 4 individuals involved brought distinct financial profiles to the table.
Kylie, a Managing Director, received trust distribution income from trusts which she does not control. Her husband Warwick was self-employed. Damian works for a large corporation, and Jane is a Partner at a large accounting firm and receives Partner Distribution income.
Despite their strong financial backgrounds, the deal presented several challenges:
- Size of Apartments: At 26m², each studio fell below standard lending criteria for traditional residential loans.
- Commercial Deal Structure: Financing the entire complex required a commercial approach.
- Complex Income Streams: Kylie’s trust income and the mix of employment and business incomes required careful assessment.
- Leveraging Equity: We needed to secure suitable Loan-to-Value Ratio (LVR) by leveraging equity in both couples’ family homes, as the maximum LVR that could be financed against the apartment complex was less than 55%.
Our team navigated these hurdles by tailoring a financing strategy that met lender requirements while aligning with the clients’ goals. The purchase was settled successfully, allowing the owners to proceed with planned cosmetic upgrades to each apartment as leases are renewed, enhancing rental yields and investment returns.
At First Point Group, we provide bespoke finance solutions for complex property deals, ensuring that challenging transactions reach the finish line. If you need expert guidance for a specialised purchase, we’re here to help you achieve your goals.
There are many different types of finance we can help with
View our Services on our website or Contact Us to discuss your needs
