Finance for 1 bedroom properties
- Thread starter july
- Start date
Hiya
Much comes down to what the property actually is in terms of security "quality".
Generally the policy with most lenders is 80 % for sub 50 sqm true ONE bed units.
We have placed one bedders with a true 45 sqm with loans as high as 97.1 % Interest Only for 10 years through the ANZ so its not quite as clear cut as that Manager may have indicated.
ta
Rolf
Much comes down to what the property actually is in terms of security "quality".
Generally the policy with most lenders is 80 % for sub 50 sqm true ONE bed units.
We have placed one bedders with a true 45 sqm with loans as high as 97.1 % Interest Only for 10 years through the ANZ so its not quite as clear cut as that Manager may have indicated.
ta
Rolf
PMI, the mortgage insurer, recently changed their policy so that the minimum size is now 40 sqm. It seems that not all lenders who use PMI (e.g. ANZ) have decided to adhere to this change. There are a few smaller lenders that shouldn't have a problem with the unit assuming it is a reasonable size. Heritage Building society is one that should be okay with it.
Hi Ruk
I also thought the same way until I learnt that there are 16 real estate agents in my area, each one has more than 32 investment properties listed on their books. Less than 2% of those properties are one bedroom apartments, 0% are freestanding one bedroom properties and they have phone calls every day from couples and singles looking for 1 bedroom properties to rent. Whilst contrary to my beliefs, I changed my strategy and bought one bedroom properties and am receiving more rent for these properties than from my renovated 2 bedroom propertyin the same location.
Perhaps it shows how slow the lenders are to changing trends.
I also thought the same way until I learnt that there are 16 real estate agents in my area, each one has more than 32 investment properties listed on their books. Less than 2% of those properties are one bedroom apartments, 0% are freestanding one bedroom properties and they have phone calls every day from couples and singles looking for 1 bedroom properties to rent. Whilst contrary to my beliefs, I changed my strategy and bought one bedroom properties and am receiving more rent for these properties than from my renovated 2 bedroom propertyin the same location.
Perhaps it shows how slow the lenders are to changing trends.
Hi July
There are some significant changes in our society's make up that is causing the phenomenon that you are seeing.
Some of those are:
1. Break up of the nuclear family. More and more relationships result in a breakdown. Result - two dwellings where previously there was one.
2. A more affluent society. Where ten or twenty years ago "young"people were forced to share for financial reasons, the increasing income of our professional young ones means this is no longer the case.
3. A move to more city based living. In Sydney at least 20 years ago the inner city and most near CBD suburbs were not hip. They are today.
4. Convenience society. Kitchens no longer required - we eat out or get take away for 1 meal in 4.
Ta
Rolf
There are some significant changes in our society's make up that is causing the phenomenon that you are seeing.
Some of those are:
1. Break up of the nuclear family. More and more relationships result in a breakdown. Result - two dwellings where previously there was one.
2. A more affluent society. Where ten or twenty years ago "young"people were forced to share for financial reasons, the increasing income of our professional young ones means this is no longer the case.
3. A move to more city based living. In Sydney at least 20 years ago the inner city and most near CBD suburbs were not hip. They are today.
4. Convenience society. Kitchens no longer required - we eat out or get take away for 1 meal in 4.
Ta
Rolf