serviced apartments are a disaster waiting to happen.
Loan Declined..Help please.
- Thread starter iinvestor
- Start date
Not at all Aaron C.
I have little to no knowledge of LMI policy, and have zero knowledge on serviced apartments. I was under the impression they fell into the residential category - they certainly look and feel like residential to me....and therefore I'm not interested in them.
Your leaps of faith from quasi ressy and quasi comm thru to smaller buyer pools is not understood by me, and then another leap of faith to that equating to higher risk is also not understood either. If that's what they do - so be it - but I wasn't aware of those assumptions.
I'd hazard a guess the vast majority of us on this forum also wouldn't have known that specific aspect of the LMI policy handbook. Maybe a few Lenders and brokers amongst us....but not the whole shebang.
I have little to no knowledge of LMI policy, and have zero knowledge on serviced apartments. I was under the impression they fell into the residential category - they certainly look and feel like residential to me....and therefore I'm not interested in them.
Your leaps of faith from quasi ressy and quasi comm thru to smaller buyer pools is not understood by me, and then another leap of faith to that equating to higher risk is also not understood either. If that's what they do - so be it - but I wasn't aware of those assumptions.
I'd hazard a guess the vast majority of us on this forum also wouldn't have known that specific aspect of the LMI policy handbook. Maybe a few Lenders and brokers amongst us....but not the whole shebang.
Well just to clarify - when I say they are 'high risk' for a bank - it's because with most serviced apartments the owner is forbidden to stay in the actual apartment itself since it is leased to a hotel. Plus these apartments rarely have kitchens as well so they are not 'self contained' dwellings. Hence only investors can purchase these properties, limiting the pool of potential buyers, making them harder to resell if the mortgagor defaults on the loan.
