All Topics / Finance / Mortgage for Student Accommodation

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  • Profile photo of mrsimbamrsimba
    Member
    @mrsimba
    Join Date: 2004
    Post Count: 19
    March 16, 2006 - 5:48 am

    Hi,

    Is it true that in order to finance an investment property for student oppucancy you must have 30% deposit? Are there ways around this?

    Thanks

    MrSimba

    [buz2]

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891
    March 16, 2006 - 6:10 am

    You can get up to 95% on student accomodation in some circumstances eg the building must be less than 10 stories.

    Regards
    Alistair Perry

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    March 16, 2006 - 6:36 am

    Is it a purpose built student Facility or a converted house?

    If the latter then normal residential loans apply but the former is generally treated differently.

    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of mrsimbamrsimba
    Member
    @mrsimba
    Join Date: 2004
    Post Count: 19
    March 16, 2006 - 7:59 am

    Thanks for your responses.

    It is advertised as a 7 bedroom house (one level) and when I spoke with the agent they stated it was a student accommodation property. Is that considered as a separate zoning in Victoria? For argument sake, if the Brady Bunch wanted to move in, is it possible they may not be able too if the house was specifically built for students?

    I am viewing the property tonite so will ask the agent if it was student intended or just a big house.

    If the property was specifically built for students, would you be more inclined not to purchase it even if it returns a positive cashflow?

    Thanks

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    March 16, 2006 - 8:05 am

    I am with Alistair sounds like 95% maybe possible.

    Before you go unconditional just check out a Building Insurance quote. After Childers many insurers are getting cold feet and premiums have risen.

    Richard Taylor
    Residential & Commercial Finance Broker
    **Lodoc Commercial loans from 7.39%**
    Licensed Financial Planner
    Ph: 07 3720 1888
    [email protected]

    Richard Taylor | Australia's leading private lender

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