Considering options...

[Rezix]

Now before you start lecturing me, I now know that <50sqm inner-city apartments are a nightmare from a financing perspective, but given that it was my first property purchase & I didn't know this website existed when I bought it, I am in this position regardless now, so would appreciate some advice.

I own a 30sqm inner-city studio worth around $340,000.

My outstanding mortgage over the property is $275,477, making my LVR about 81% (I bought it at 90% LVR a couple of years ago, since nab lets its employees borrow @ 90% without having to pay LMI).

Thing is, staff variable rate at nab is 6.92% and it looks like there are rates well below this available now if refinancing is available.

Are there any lenders who would lend at 80% LVR for a 30sqm inner-city studio?

The other factor is that I am actually considering selling the apartment now, although it currently produces a really good yield (zoned residential, but rented short-term for a net yield of ~7.13%), some strata issues mean that its yield could soon plummet (if the owners implement a bi-law restricting the rent uses for apartments to periods 2months or greater, as they are proposing to do now).

Curious to hear some ideas about what you would do in my situation?

Thanks!

 

[MC1]

6.92 is a decent rate for that property and loan size.

What are you trying to achieve. Be thankful that you've got a very competitive rate for a security that most lenders dont want to touch.

 

[Aaron_C]

To answer your question Revix - no.

 

[Mick C]

At 80% gonna be VERY hard and will be possible only for the right client ( ie vanilla client + asset rich - over $600,000 after everything sold and debt paid out)


Here a quick LVR guild on smaller units
http://www.shapehomeloans.com.au/blog/property-under-50-square-meters-2011060635

End of the day ill say stick with NAB, your not gonna get any better deal then what you have already.


Regards
MIchael

 

[Rolf Latham]

some strata issues mean that its yield could soon plummet (if the owners implement a bi-law restricting the rent uses for apartments to periods 2months or greater, as they are proposing to do now).

?

this looks like a call to action for me

ta

rolf