Hi all,
I recently came across a 1 bedroom unit priced at $64000 (34sqm) with tenants paying $250 p/w in rent.
I called the real estate agent and he advised me that I would only be able to borrow 50% of the purchase price
since I have no collateral to secure my loan against and the property itself was less than 50sqm in total.What can I do to improve my situation so I can borrow at least 80%?
Many thanks in advance,
Lance
Hi Lance,
Yes generally apartments less than 50sqm in living area would require a deposit of 30 -40% depending on the location and the type of building the unit is located in. Also note that if the unit has a allocated car bay and balcany this can be added in some cases to the living area to increase the size which has helped me secure units in the past.
Other factors which can change the size of the deposit are
1) The amount of floors in the building
2) Is this a service apartments
3) location of unit i.e city or outer suburb
4) does the property have a bedroom or is it a bedsitter
5) do you plan to live in this unitThis info is required before someone can advice you further, hope this helps
St G can lend up to 80% on units as small as 25sq meters.
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
Lance
As Terry has already mentioned SGB will go to 80% and as long as the deal is full doc so will First Mac.
In fact i can think of a couple of other lenders who will also go to 80% LVR.
Much above that and you are fightning the mortgage insurers.
Richard Taylor | Australia's leading private lender
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