hi, can someone just confirm this for me. i hear that in order to buy a student accom. apartment, you need at least 30% down payments as the banks deem this 'risky' and especially if its in the city and under 50 sqm.
thanks
Yes i can confirm this for you.
Depending on the actual size of the Unit will determine the LVR you can achieve.
Richard Taylor | Australia's leading private lender
Yes i can confirm this for you.
Depending on the actual size of the Unit will determine the LVR you can achieve.
Richard Taylor | Australia's leading private lender
Yes i can confirm this for you.
Depending on the actual size of the Unit will determine the LVR you can achieve.
Richard Taylor | Australia's leading private lender
say around 45sqm and a student accom. apartment, what would the LVR be for that Richard?
Off the top of my head you probably wouldnt get 75-80% with a retail lender.
You might get more with a specialist non conforming lender but of course a high interest rate and set up costs
Richard Taylor | Australia's leading private lender
Sorry that should have read
Off the top of my head you probably wouldnt get more than 75-80% with a retail lender.
Richard Taylor | Australia's leading private lender
lol the second post is a lot more soothing to hear. thanks richard
Hi Ume,
Just out of curiosity – are you considering purchasing and if so why?
Thanks!hi Vstar, i am indeed thinking of purchasing. mainly so i have somewhere to live in sydney and it'll be close for me to uni. and i suppose an ip after i graduate.
Hi Ume,
Are you considering Unilodge in Broadway?You are aware of all the pitfalls etc and usually those types of apartments are a bit harder to sell etc???
Just wondering you've considered all your option
Good Luck!
oooo your good vstar, yeah i am considering unilodge at broadway. i am aware they're harder to sell but dont really know any other pitfalls, if you could please enlighten me. thanks
Oooh Ume,
I lived there for 2 years (about 4 years ago now). 1st time in a studio loft ($250/wk) and 2nd time in a larger loft ($360/wk).I know that it was cheap at the time to consider buying but i think the outgoings was quite hefty considering the elevator/24 hours security/swimming pool/concierge
After having living there and knowing that alot of people treat it like crap – i would (from a personal point of view) be hesitant to invest there knowing what i know now. If you think about it who you "target market" is for when you do sell – who will it be and how can it be a "good investment"
For example:
1. It may have slight capital growth being in the city but i don't know how much exactly – it will be slower compared to other city apartments that are non student accomodation
2. You can't renovate it or add value since it's a unit and it is what it is and you have to follow their rules – and really even though they say 1 bdr studio – it's a studio!
3. It's not cashflow positive with all the outgoings
4. the walls are weak – YOU CAN HEAR PEOPLE NEXT DOOR!!! At night i could people's snore and other things I could tell you so many other stories – like how someone managed to get into my apartment and steal my laptop/camera etcI can however understand though that you may feel – hey – i'm spending all this money on rent at the Unilodge/it's a great location/safe for the 24 hour security- i may as well just own it – but it's the fact that you're paying interest on your own rent and then when it comes to sell it – it will be hard to sell- whenever you go to realestate.com.au – there is always ones for sale and you really wonder whether or not they ever sell – even just doing a search now there's 5 listed – 5 for an "investor" to choose from – how can you even distinguish one from the other?
Also – with the recent building of "The Quadrant" right next door- i know that was where alot of the richer Unilodge kids ended up buying in rather than buying at the Unilodge. It was a real unit and all new – still a great location and at the end of the day – they could sell it and it would be more "marketable" to a variety of investors – not just the student accomodation investors.
SO…maybe you should try and find someone who has bought one (and who is NOT trying to sell – otherwise their motivations could be questioned) and ask them what they think. Having lived there – i feel sorry for the owners!
Hope this helps and as long as you've done your research and you're still okay about buying- then so be it
PS – looking at the listings and those photos – WOW – they make it look so much better than it actually is!!!
PPS – If you haven't seen it in real life yet – get someone to get you "real photos" rather than camera angled zooms that make the rooms look so big
PPPS – If you are getting one – definately get one with a loft – otherwise you will have a shoebox literally!!!thanks for the warning vstar. i suspected much but wasnt entirely aware of the rules and regulations there. obviously u sounded VERY distressed and i dont blame you, i stayed at a hotel once and yes you could hear next door snoring, and its a nightmare cant imagine it 24 hours 365 days a year.
i was going to check it out in person and try to find any faults, but i thank you for confirming them for me.
But as you know Sydney being sydney is so expensive and all the other units (1br) are at least around 350k… but i'll try to look around, thanks for the heads up. much appreciated
just out of interest, what LVR did you manage to get or approved for unilodge?
pat
Distressed? hmm…just be careful and go check it out! I didn't purchase it – i just rented there. So no LVR to tell you – sorry!
It's a decent place to rent for a student to live by themselves as the building does get locked after 8pm and you need a swipe card to get in but to buy….If you are going to go check it out remember to:
1. Ask where the laundry is (there is no place to hang your washing except your shower area for dripping delicate clothes)
2. Freezer for food (from memory they throw out any food in the freezer each week) and you only get a small bar fridge
3. Charging you extra for air conditioning
4. Go upstairs the loft and see if you can stand straight – the loft to ceiling i remember that friends over 170cm couldn't stand straight.
5. Ask about parking (if you have a car)Are you sure you don't want to just cram it in with other uni students somewhere else and just pay $80/w in rent and use your savings to buy in a high capital growth area??? Do some sums – you could have several IPs when you graduate
Well as always – good luck
Unilodge does have a bad reputation over the years. However I bought one there and live there currently. It is far from my dream home but for what it is worth that is pretty much what you get.
With the limited income I only have few options:
1. A house in a good suburb but 60 mins away from the city
2. An old house in not too good suburb but only 15 mins away from city
3. A small apartment in the CBDIt is true that the body corp does put the apartment outgoing to the top compare to the other options. But time is money. If the body corp is $3650/year that is $10/day. If I chose option no 1 the time I spend each day on traveling should be more than $10/day. Not to mention petrol/ car maintenance/ train ticket.
An old house will attract higher maintenance fee like renovation/ plumbing/ etc. Insurance rates might be higher as well as the suburb profile presented.
Growth, houses will definitely higher. Apartment in CBD however attracts almost double the rent rate compare to houses. Growth is compound, exponential hence it is good for long term investment. For a 10 years investment, an apartment may deliver more money than those houses.
I'll try to do some excel on rent vs growth for 10 years investment. Lets see what I come up with.
hey blaze, how many LVR% were u approached for? and how much expenses are you paying if you dont mind me asking?
approved **
My mortgage broker offered me few; ranging 75% – 60%. Higher LVR attracts higher interest rate. I chose the 60% one. My total outgoing is about $3000/year ($500 council, $100 water, $2400 body corp).
I could tell you so many other stories – like how someone managed to get into my apartment and steal my laptop/camera etc
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