Some people dream about the day they can retire to properties on islands and hobby farms. Others aim to live on these properties while they’re still young enough to enjoy them. Financing either of these properties through a non-bank lender like Mortgage Street is possible. A broker should understand that it takes some number crunching to reach a solid compromise between risk and reward.
Hobby Farms
Hobby farms qualify for special financing as long the property meets certain criteria. These properties are rural so they take longer to move. In the eyes of a lender, hobby farms are a risk because they take longer to sell. They also require a solid commitment to maintenance.
Farms that require financing but aren’t meant to become a primary source of income have a size limit of no more than two hectares. Most lenders offer up to 95% of a farm’s value in financing.
Island Properties
Living on an island property with amazing views is desirable to some people. Lenders understand the draw but also view the property as a risk. Since it tends to be remote, finding a buyer requires time and effort.
Most lenders will finance up to 85% of the value of island property. If an applicant brings in a guarantor, the lender may agree to finance up to 105% of the property’s value.
Brokers who come across a foreign client interested in purchasing an Australian island property can rest assured. There are processes in place to streamline the possibility of the transaction being successful.
Properties on Islands and Hobby Farms Conclusion
Brokers with clients that are interested in properties on islands and hobby farms can give our Mortgage Street team a call. Our specialists are ready to run the numbers through our innovative tools and deliver attractive loan terms.