serviced apartment

[WebBoard]

From: Day Dreamer


What are people's experience with service apartments ? Last weekend I signed a contract for a serviced apartment but was told by Bank of Melbourne today that because the lease was longer than two years they would not approve investment loan for the purchase. Are there any lenders in Victoria that do not have such restrictions ?

 

[Kristine..]

Reply: 1
From: Kristine .


Hi, Wai Tai

I sell serviced apartments and 'my' independent, licensed broker has access to a range of competitive bank products which will definitely finance them in the Melbourne market.

The Bank of Melbourne, however, is not one of them. I have been told that this is because the tenant is a commercial venture, and therefore not under a residential lease.

One of the 'Big Five' banks will (usually, provided the purchaser meets qualifying conditions) lend to 80% of the contract price, and another of the 'Big Five' to 100% of the contract price, with the purchaser providing for purchase expenses.

I won't post the broker's name here because (a) spamming, but more importantly, (b) I haven't asked his permission to do so. However, you are welcome to email me and I shall ask his permission to pass his name on to you.

Good luck, and well done! I personally think serviced apartments (those with a good lease and comprehensive documentation) are a great innovation in the market, and in my experience, once people buy one, they are very inclined to buy more!

Kristine

 

[WebBoard]

Reply: 1.1
From: Day Dreamer


Thanks Kristine, I already posted to your email address.
Wai

 

[Anonymous]

Reply: 2
From: Anonymous


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