Hi all,
I was looking for an unbiased opinion regarding the resale potential of an apartment purchased that has roughly 40 sq m internal space. I understand that the banks don't like this, and will impose a higher deposit amount to cover such properties.
When making an investment in a property with around 40 sq m internal space, do you believe that the "pool" of new potential investors who may wish to purchase the property (After you hold it for a few years) would be reduced by a fair extent? Just want to evaluate the difficulty in selling the property, and if the sq m plays an important factor.
Regards,
AjaySize does matter. The number of people who cannot come up to the large deposit of up to 30% must have an impact on potential purchasers – but this should be reflected in the price you are paying too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Ajay,
I generally keep it above 50sqm so I can get LMI and therefore a higher LVR (95%)
but my fiance and I have one 41sqm apartment(Darlinghurst, Sydney) we got an LVR of 80% (so didnt need LMI)
but recently I was talking to a Loans manager at a branch of the CBA and he said the LMI coy will go a bit under 50sqm (45sqm)… but I havent tried this yet..
I dont think you would have a problem re selling it as long as its inner city and 40sqm minimum..
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