I’m wondering what sort of deposit lenders require if we looked at purchasing a resort unit. Also is it treated the same as a home loan or is it a higher interest rate/ less flexibility type of loan.
Just doing some creative thinking at the moment. I am only at the thinking stage at present so advice would be great before I approach anybody.
I,d be more worried about body corporate fees in a resort.They want the grounds looking nice all the time and it is you that pays for it.
Also management fees can be very high and then theres the cleaner.Once you start adding up the fees and taking into account the occupancy is probably only 60% you may have different ideas about the investment.
Russ.Hi Drinksbunny,
You will need to check out your lenders policy with respect to resort units – some like more than the standard 20% equity if the unit is smaller than 50sqm.
In some respects these types of investments can eat up more than their share of your valuable equity.
A discussion with a broker will also help you get a definitive answer from across their panel of lenders. Also be aware that policies can change and while a bank may lend at 80% initially a review of policy can see them adjust that figure and you end up with a situation where the same lender will not recognise the unit as suitable security for subsequent lends.
Derek
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Previous advise- make sure u check out the Body Corp Levies / Facilities service charges as well as refurbishment obligations. resorts have to meet a certain level of standard to sell the room and u are normally the one who fits the bills for softs , FF&E,TVs etc. Do your homework buddy !
thanks everyone,
I knew I’d have to find out all the ongoing costs, just wasn’t sure if I’d have enough deposit before I investigated more deeply. I might just stick to residential property I think, much easier.
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