Hi – could anyone shed any light on the reservations (if any) a lender has on properties less than 50sq metres?
(i understand there can be a different criteria, such as a more conservative LVR)
Cheers
Hi Andy
Yes anything under 50 sq M it is a real concern and depending on the post code (lenders dont like real inner city unit) actual size and whether it is a studio or 1 bedroom unit will determine:
1) Whether it can be financed.
2) What ovr you can go upto.Unfortunately anything under 35-40 sq M probably wont qualify for LMI so definately a loan of 80% or less and depending on the actual Sqm will determine the number of lenders who would consider it.
More information required to enable a more structured answer.
Richard Taylor | Australia's leading private lender
thanks mate that is helpful
And don't forget if it is hard to finance = hard to sell = lower appreciation.
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
Especially it is rented to property management company…. even worse
Terry is absolutlely right, I tend to direct my clients away from them. Particulalrly in my neck of the woods, very hard to sell and if you are looking at a big block, my experience has shown me there are generally a lot on the market at the same time. But if you are going to get the 50sqm or under you would be well advised to get a one bedroom, not a studio.
Hi Andy. I downloaded a copy of how each lender on my panel assess this criteria – I'm happy to send that across to you – just shoot me an email. Cheers, Mike
Hi Andy
Good to hear from you glad we could help.Richard Taylor | Australia's leading private lender
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