Tuesday, June 12, 2007

New Property Purchase (2) - Financing And Refurbishment

I have finalised the finance for the purchase:

1. 70% gearing;
2. 20 year p+i term;
3. 0.5% cash rebate;
4. interest rate at the lower of prime - 0.8% or 1 month HIBOR + 0.5%;
5. repayment penalties of 2% in the first year and 1% in the second year.

I could have obtained a better cash rebate by using a different bank but decided to use a bank which I know from experience is flexible and fast in approving leases rather than take a risk and end up with a bank which is an unknown quantity in this respect.

I have also finalised the contracting for the refurbishment of the unit. The apartment will be completely stripped and all new fit out installed. The contractor has confirmed that he will be ready to start as soon as completion has taken place.

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