Mixed-use properties can be attractive investments, but finance can be more complex because the property includes both residential and commercial components.
Examples include a shop with a residence above, a warehouse with office and residential use, or a property with retail space and apartments.
Why mixed-use lending is different
Lenders assess mixed-use properties based on:
- Percentage of residential vs commercial use
- Zoning
- Rental income split
- Property location
- Marketability
- Valuation method
- Borrower structure
Residential or commercial loan?
Some mixed-use properties may be assessed under residential lending if the commercial component is small. Others may require commercial lending due to the property use, zoning or income source.
Common challenges
- Limited lender appetite
- Valuation complexity
- Lower LVR in some cases
- Lease documentation requirements
- Different pricing compared with standard residential loans
How Nine Fincap can help
Nine Fincap reviews the property type, valuation risk, borrower structure and lender policy to identify the most suitable funding pathway.
Buying or refinancing a mixed-use property? Get a Mixed-Use Property Assessment with Nine Fincap.
Disclaimer
This article is general only. Mixed-use lending depends on lender policy, valuation and property characteristics.