It would appear that the banks dont like lending more than 60% LVR on properties under 50 SM.
Has anyone else come accross this and is there any way around this
Banks are not in the risk taking business. When investing you have to look at the bottom line, firstly what is the return. Clearly if the return is a negative position forget it. The problem with this type of property is that it will not provide capital growth. At the end of the day if the property does not offer capital growth or high cashflow look for something that will. I like properties that coul also be sold to owner occupiers.
Nigel Kibel
http://www.propertyknowhow.com.au
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Marty
i think you were asking the wrong bank.
I have financed several proeprties over the last week or so which were less than 50 Sq M and have got 95% & today 100% finance for a client.
Most lenders dont like it if the property is inner city and a studio type set up or if it is in rental pool or has to be let.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
There is absolutely no problem getting properties financed at high LVRs under 50 sqm. Try using a mortgage adviser and things will be much easier. Even inner city can be done at 100%.
The real problems exist when a property is less than 25 sqm but even these can still be done.
Robert Bou-Hamdan
Mortgage Adviser
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