minimum apt size for 80% loan?

[willfong]

Hi we are considering getting a small 1br/studio apt for our next IP. I remember reading that the banks don't like something smaller than 50m2 for finance? Is that 50m2 still the rule of thumb?

 

[Qlds007]

Probably get away with 40 Sq M maybe less with some private lenders but rule of thumb if the internal areas excluding balconies and garage are greater than 50 Sq M then you should be fine.

I can think of 1 lender who will go down to 25 Sq M but LVR is reduced accordingly.

 

[Spectre]

Think cba just cut to 40sqm to 80. Cant say 100% as I missed that part of the presentation thanks to brisbane traffic. I was reading a guys notes over his shoulder.

 

[willfong]

Thanks for the info.

 

[tobe]

LMI only available to units more than 40 sqms living area. It helps if the place has a seperate bedroom, not a bedsit or ''studio apartment''. Interestingly I had an assessor ask me if one of these small apartments has laundry facilites, I said it had some wash taps in the bathroom, which seemed to do the trick. Its also applicable to small cottages, even if the land area is normal, which may affect some small holiday place buyers.