All Topics / General Property / STUDIO APARTMENTS

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of LnM24LnM24
    Member
    @lnm24
    Join Date: 2008
    Post Count: 6
    September 12, 2008 - 7:20 am

    Hi,

    Just like to get some feedback regarding Studio apartments?

    Are they good investment options? What are the pros and cons?

    Any feedback would be much appreciated. Thanks.

    LnM

    Profile photo of sallyannsallyann
    Member
    @sallyann
    Join Date: 2005
    Post Count: 53
    September 12, 2008 - 11:36 am

    Some banks only lend on a minimum floor area (eg won't lend on under 50m2 for example) so floor area can be critical.

    Profile photo of CafankCafank
    Participant
    @cafank
    Join Date: 2004
    Post Count: 19
    September 12, 2008 - 7:05 pm

    I have a studio in Cairns and have never had problems with it in over 5 years. Bank didn't care about the size either. I have a good CG on it now too.

    Studios have to be in good areas where people want to live in tiny homes (mine has the same tenant as 5 yrs ago) or in areas where holiday rental will do the job.
     
    I think I would be wary about getting another one – I'm not seeing enough return on ones advertised at present, then again I would never say never……

    Profile photo of BennyteeBennytee
    Participant
    @ten_burner
    Join Date: 2006
    Post Count: 243
    September 13, 2008 - 2:55 am

    Hey guys,

    the banks only care about the floor size being over 50m if you need lenders mortgage insurance(LMI) and you will only attract this if you want a loan to value ratio (LVR) higher than 80%

    I would only get a studio apartment if it was in a CBD of a major capital city..

    all the best

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    September 13, 2008 - 7:42 am

    Guys just to clarify the position on studio units and financing these deals.

    Anything over around 30 sq metres can be financed however some lenders are more picky than others.

    Recently did a 95% Lvr on a 32 sq M owner occupied studio so it can be done.

    Richard Taylor | Australia's leading private lender

    Profile photo of LnM24LnM24
    Member
    @lnm24
    Join Date: 2008
    Post Count: 6
    September 13, 2008 - 1:21 pm

    Thanks for your input guys. Appreciate it a lot.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 13, 2008 - 1:26 pm

    I am not keen on studios. if they are hard to finance, then they are harder to sell which can limit capital growth.
    Lender and LMI polcies are constantly changing too……. things may get worse (or maybe better??)

    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

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.