I am a new member and this is my first!
I am hoping someone out there can help me with the question of postcodes.
Are there financiers who will lend on postcodes with small populations?
I live in a city of 90k, with quite a few small satellite towns nearby. Naturally, better returns seem to be in these satelite towns. The usual return in the city seems to be 5.5% gross.
Anyone have info on financiers?? Tahnks in advance!
GIDDO [cap]Giddo,
This doesn’t answer your question directly, however I think you will find that the mortgage insurers have a significant influence on bank’s lending policies regarding small towns.The link will give you a guide as to what PMI (one of the MI’s) deems what location is eligible for mortgage insurance and therefore what LVR ratios can be lent.
THANK YOU WOODSMAN,
That is exactly what I wanted to know.
Ta
GiddoSorry to be a spoil sport, [blush2]but have you ever wondered why banks don’t want to lend for the type of property you are looking at.
Remember banks are money shops- they make their profits lending you money.
But they have also been around long enough to know that property prices in “one horse towns” are very volatile and even with a 20% buffer (that is – your deposit) they could still loose out.
And….so could you.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auYou can generally get 95% loans for most areas of Australia up to about $150,000 properties. Just check out your postcode on the link provided by Woodsman. The shorter version is:
http://www.pmigroup.com.au/LocationWizard.aspAnd I agree with Michael, it may not be a good idea buying in these small towns. But it can be – one of my clients had a 30% increase in value in a few months, with the proeprty being positively geared. I suspect that these figures won’t be this good for long.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
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