Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of kermitkermit
    Member
    @kermit
    Join Date: 2005
    Post Count: 8

    Hi guys, yes I know a number of people don’t like units especially 1 bedroom ones but at the moment its all i can afford.

    I was wondering how important is the size of the apartment. eg
    Building is on one of the 3 main streets of the city. So renting should be no problem. Both units in the same building, both getting 200pw rent.

    Aprt 1,
    second floor, 39 sqm price 140K

    Aprt 2,
    sixth floor, 50 sqm price 160K

    Is aprt 2 worth the extra 20k

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    You will find finance a WHOLE LOT easier if you choose one with a floorspace over 50sqm.

    Cheers,

    Simon Macks
    Residential and Commercial Finance Broker
    [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 celesteceleste
    Participant
    @celeste
    Join Date: 2005
    Post Count: 169

    Hi Kermit

    I would go for the 50sqm, the other is too small.

    The problem with finance for properties under 50sqm kicks in when you need to borrow more that the 80%, it has to do with the insurance.

    If you need to borrow more than the 80%, B4 you sign anything check with your bank / broker etc whether the insurance will knock it back because of the size. Some will, some won’t.

    celeste

    Profile photo of kermitkermit
    Member
    @kermit
    Join Date: 2005
    Post Count: 8

    thanks for the replies, so I should check out with my lender if they are happy lending for a 1 bed aprt and minimum size they require.

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    Originally posted by kermit:

    thanks for the replies, so I should check out with my lender if they are happy lending for a 1 bed aprt and minimum size they require.

    Or use a broker to find out the min for all lenders.

    Even if you get finance be aware that many people struggle to buy under 50sqm unless they have a large deposit. Hence when you go to sell your buyers will face this additional hurdle.

    if you can afford it then consider the larger place.

    All the best

    Simon Macks
    Residential and Commercial Finance Broker
    [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 Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Simon is of course right that > 50 SqM is easier to finance but i think as long as it is > 40 SqM then you should have any problem.

    Much less than than this you will either be required to put in a larger deposit or alternatively pay a higher rate of interest.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner.
    Ph: 07 3720 1888
    [email protected]

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of kermitkermit
    Member
    @kermit
    Join Date: 2005
    Post Count: 8

    Yes I can afford the more expensive one, the reason I asked about this is just that the numbers on the less expensive aprt look a bit better.

    thanks for the replies

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