I was just looking at mcgrath.com.au Some of the studio/1 bed apartments are so tiny and the fees can range up to 5k per annum with body corp fees and council/water rates.
How can these places maintain value when banks are now wary about lending for:
* less than 50sq metres
* studios in general
* pyrmont/ultimo locations that are considered oversuppliedDo people think these kind of places will be the first to go under if interest rates rise?
And where is the value in paying an extra 100 bucks a week to merely maintain your property!
kay
Banks are willing to lend on under 50 sq so long as the LVR is good usually between 70% and 80% and some will go up to 95%, sosize really isn’t the issue. The issue is more position. Any studio/1 bedders in the area codes of 2000 – 2010 (and sometimes up to 2016) the banks are very cautious.[xx(]
I personally think that if interest rate rise, it will be CBD, Pyrmont/Ultimo and Alexandria will be the first to fall. However, if you look already prices haven’t moved that much in the last 5 years in the CBD so they are not a great investment anyway.[
]I just picked up a 1 bedder in Bellevue Hill (41 sq) and the levies are 1200 a year. It is not too bad and it is in one of the best streets in Bellevue Hill, so if you are looking in the studio/1 bedder market, you have to be a bit finicky too. The one bedder next door to me sold at a premium of mine at $45,000 and it is in the same condition.[
]Some banks will also lend on under 50 sq metres provided the bedroom and living areas are divided by a fixed wall… ie a smallish 1 br unit rather then a studio
Still… i agree that those in the city areas will drop first once rates rise…
All the best
Jason
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