Can Multiple Lots Be Listed on One Title?

If you want to own semi-detached houses, townhouses, complexes, or other multi-unit properties, you probably don’t want to have a separate title for each lot. Fortunately, you can list multiple lots on a single title, but there are a few things that you need to know first. 

What is the Advantage of Multiple Units? 

In short, multiple units can be a good investment. Not only does it cost less to purchase several blocks on one title, but you can earn more by renting to several tenants. 

That said, multiple units are not necessarily easy money. Before purchasing a multi-unit property, be sure that the area has sufficient demand to meet the supply you’re offering. If there’s no need for rental units in your area, or if the title has too many undesirable units, you won’t be able to charge enough for rent to make up the investment. 

What Are the Restrictions on Multi-unit Titles? 

Most lenders restrict buyers from putting more than three units on a single title, simply because it can be harder to sell a title with too many units. 

Lenders also restrict the maximum Loan to Value Ratio (LVR). In other words, most lenders allow an LVR of no more than 80%, with some limiting borrowers to no more than 60%. 

Need More Help? 

A multi-unit title can be lucrative if the area is right, if the demand calls for it, and if you have support from your lender. Fortunately, Mortgage House can provide that last part. Contact us today to begin talking with representatives about your options. We can help you get started on your new rental property.