Hi all,
was wondering if anyone could help me with the name of lenders who will provide finance on units under 40 square meters? I have pre-approval with one lender for $192,000 on the condition that the unit I buy is larger than 40 m2. However I can’t find any units in Sydney for under $200,000 that are anywhere near 40 m2.
hope someone can help!
luceumm, and if you’re a mortage broker and can’t give me a name cos it’s not in your interest, can you still please let me know if you know of an appropriate a lender? taa
I made some enquiries a while ago and could only come up with a private lender that was willing to lend on someting like this. The rates would be in the 8% + range, and LVR was about 70%. This is not ideal, and severely limits the resale value of these units. Though, the rental yield can be higher than normal.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
How much are you borrowing (i.e. LVR)?
If you’re borrowing over 80% and need mortgage insurance then you’ve got no chance.
However, if you’re borrowing under 80% then try CBA and/or RAMS. NAB has also done small properties in the past but their policies change almost hourly.
Good luck.
Cheers
Stu
Oops – didn’t read post very well. Looks like you’re borrowing over 80%. Therefore I don’t think you’ve have much luck.
Cheers
Stu
yeah, I would be borrowing over 80%. my bank has looked at what I have left to pay on my other mortage and offerred 192K total, including deposit bond for my next place. I figured I could just get a personal loan to top up things if the price was a bit over that. so if other lenders are going to need a chunky deposit it looks like i’m stuffed [
] spose i’ll just wait til i can save some more dosh!lwaterer,
You could try a different bank and get your current property revalued again- you might get more (valuation and loan $$) with a different provider.
kay henry
DO you HAVE to buy in Sydney? May be if you go to other places you will find a unit that is a bit cheaper and/or bigger. (Not sure if you are wanting to live in it or is it going to be an IP?)
yeah, i was going to live it it. I suppose i could look at gettiong an IP somewhere else until i can save the deposit for a place in the city. At least that way in the mean time i might make a little extra in capital gains? or it’ll make my income look higher (considering i’m still studying!) so i’ll look like i can service a bigger loan… i dunno – i just wanted my own cute little place that i could walk to work and uni from, you know? [
]lwaterer,
There are studio apartments for about 115-125k on Broadway. They are called “Unilodge”. They’re small but they have access to pool, gym etc.
Close to sydney uni, and UTS. Check them out on domain.com.au Just type in “broadway” or “city” and they should come up. Then you can just put in a bigger deposit and buy the apartment.
kay henry
I know where you can purchase two units under one title that are $185,000 returning over 7% net return.
It is sometimes difficult to borrow for properties under 50sm, however if you would like some information I would be happy to send you the financials etc.Really propertyprofile? 2 units for 175k in sydney?
hmmm…
kay henry
We have just finished refurbishing 14 x 1 bedroom units in the West of Brisbane all under 50 square metres.
Having arranged finance for purchasers on over 10 of them ourselves we used a combination of Banks. Try HSBC, Bank West or St George dependant on the LVR.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
I know where you can purchase 2 units on 1 title that are 51.sm each for $185,000 returning over 7%net return, in Qld.
I would be happy to send you the details
please look at http://www.investinginproperty.com.au for details.Propertyprofile
St George will do under 40m2.
But I’d seriously caution you AGAINST buying such a small unit – when it’s time to sell, you’ll realise the next buyer will also have headaches finding finance!
I knocked back offering to help with financing on a Sydney redevelopment (still selling) coz I didn’t want clients coming back to bite me!
Cheers, Max
Alpha Financial
Residential & Commercial Loans
02 9560 3061
] spose i’ll just wait til i can save some more dosh!
]
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