All Topics / General Property / No mortgage for small properties?

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  • Profile photo of EigentumEigentum
    Member
    @eigentum
    Join Date: 2003
    Post Count: 14

    I’ve been lurking for a while and after searching the forum still couldn’t find an answer to my question. This is now getting urgent as the normal lenders have said no and I really need finance for this property.
    Property is in QLD, is just over the 11 second rule, but definitely positive. Only problem seems to be nobody wants to provide finance for anything less than 50 square metres (it’s a studio, how big do they think studio’s are?). Don’t need LMI as I have the 20% deposit.
    Can anybody point me to a lender who will touch this kind of property? Or maybe one of the brokers on here might be able to help?!?

    Profile photo of George1George1
    Member
    @george1
    Join Date: 2003
    Post Count: 59

    I might be able to point you in the right direction. Im in Sydney but I can point you to a bank.

    Email me on [email protected]

    Profile photo of KeithMKeithM
    Member
    @keithm
    Join Date: 2003
    Post Count: 3

    Suggest you try

    Robert Johnston
    PO Box 681
    Main Beach Qld 4217

    Ph 07 5528 5332
    Email welovekrug@bigpond

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    NAB & CBA will do it. Both do not have a min. size.

    Good luck.

    Cheers

    Stu

    Profile photo of George1George1
    Member
    @george1
    Join Date: 2003
    Post Count: 59

    You must have an LVR of 80%, so you must have 20% plus costs – stamp duty etc

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    How big is it? (the studio that is[:)])

    Many lenders will accept about 40 sq meters, but anyting lower gets hard. The smallest that I have heard about is square metres.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of EigentumEigentum
    Member
    @eigentum
    Join Date: 2003
    Post Count: 14

    Thanks everyone for your suggestions. Unit is 26 square metres. Have already lost one unit thanks to nobody (including the broker) telling me about the size issue until it was too late. Had both of them in the one application, which went sour. [:(!]
    Have an extension on this one until Thursday and it looks like CBA will pull through. [:D]

    Profile photo of George1George1
    Member
    @george1
    Join Date: 2003
    Post Count: 59

    Don’t blame the broker newbie. Everyone blames the broker if they lose a property. The fact is most clients don’t have all their info ready or the client doesn’t inform their broker about the security that they are interested in.

    A 26 square unit is not the most stable investment and this is evident by the fact that most financial institutions shy away from them.

    Next time, be upfront and tell your broker that the investment you are looking for is a unit under 50 squares and you will have your finance ready to actually make the purchase.

Viewing 8 posts - 1 through 8 (of 8 total)

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