Financing a second commercial property

24-10-2014 02:18PM

#1

Bawnmore_Ent.

Registered Users, Registered Users 2 Posts: 165 ✭✭

Join Date: May 2010

Posts: 139

hypothetical scenario

If a commercial property was purchased for cash for €250k and subsequently the purchaser went to a bank and looked to finance a second commercial property, what are the limitations to the amount of finance they would give on the second property eg would the 1st property be taken as 25% deposit/collateral and they would provide funding up to €750K on a second purchase.

Assuming yields are 7%

Thanks

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