No mortgage for small properties?

Viewing 8 posts - 1 through 8 (of 8 total)

Eigentum
Member
@eigentum
Join Date: 2003
Post Count: 14
October 2, 2003 - 6:50 am
I’ve been lurking for a while and after searching the forum still couldn’t find an answer to my question. This is now getting urgent as the normal lenders have said no and I really need finance for this property.
Property is in QLD, is just over the 11 second rule, but definitely positive. Only problem seems to be nobody wants to provide finance for anything less than 50 square metres (it’s a studio, how big do they think studio’s are?). Don’t need LMI as I have the 20% deposit.
Can anybody point me to a lender who will touch this kind of property? Or maybe one of the brokers on here might be able to help?!?
George1
Member
@george1
Join Date: 2003
Post Count: 59
October 2, 2003 - 6:56 am
I might be able to point you in the right direction. Im in Sydney but I can point you to a bank.
Email me on [email protected]
KeithM
Member
@keithm
Join Date: 2003
Post Count: 3
October 2, 2003 - 6:59 am
Suggest you try
Robert Johnston
PO Box 681
Main Beach Qld 4217
Ph 07 5528 5332
Email welovekrug@bigpond
Stuart Wemyss
Member
@stuart-wemyss
Join Date: 2003
Post Count: 598
October 2, 2003 - 8:16 am
NAB & CBA will do it. Both do not have a min. size.
Good luck.
Cheers
Stu
George1
Member
@george1
Join Date: 2003
Post Count: 59
October 2, 2003 - 9:21 am
You must have an LVR of 80%, so you must have 20% plus costs – stamp duty etc
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
October 2, 2003 - 11:13 am
How big is it? (the studio that is[])
Many lenders will accept about 40 sq meters, but anyting lower gets hard. The smallest that I have heard about is square metres.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Eigentum
Member
@eigentum
Join Date: 2003
Post Count: 14
October 3, 2003 - 7:03 am
Thanks everyone for your suggestions. Unit is 26 square metres. Have already lost one unit thanks to nobody (including the broker) telling me about the size issue until it was too late. Had both of them in the one application, which went sour. [!]
Have an extension on this one until Thursday and it looks like CBA will pull through. []
George1
Member
@george1
Join Date: 2003
Post Count: 59
October 3, 2003 - 12:03 pm
Don’t blame the broker newbie. Everyone blames the broker if they lose a property. The fact is most clients don’t have all their info ready or the client doesn’t inform their broker about the security that they are interested in.
A 26 square unit is not the most stable investment and this is evident by the fact that most financial institutions shy away from them.
Next time, be upfront and tell your broker that the investment you are looking for is a unit under 50 squares and you will have your finance ready to actually make the purchase.