Finance

[WebBoard]

From: Mike .


Loans for less than 50 sq m. properties?
From: Kathryn
Date: 15 Nov 2000
Time: 22:17:11

Wondering if anyone could recommend financial institutions who will lend for v. small properties. (I believe banks have a problem) I can use my line of credit, but it is at 8.25% which is almost 1% more than variable rates.

 

[WebBoard]

Michael Yardney

Reply: 1
From: Mike .


Re: Loans for less than 50 sq m. properties?
From: Michael Y - Metropole Properties
Date: 16 Nov 2000
Time: 19:45:16

Think about it. If the banks are reluctant to lend on this type of property there must be a reason. If they consider it a poor lending risk, should you really be buying this type of property?

To buy a good investment you need a property that will always be in CONTINUOUS STRONG DEMAND. Small properties may be cheap but their attraction to both tenants and future owners will always be limited. You will have trouble when you need/want to sell down the track. Save a little more or borrow a little more and buy a better investment.

Michael Yardney - Metropole Properties