Student Accomdation!

Viewing 13 posts - 1 through 13 (of 13 total)

dust27
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@dust27
Join Date: 2011
Post Count: 3
January 5, 2011 - 1:46 am
Hi, i have given 10% deposite alreayd for a student accodmation located in melboune, im having so many problem getting a loan for this becasue its 25 squ meters only- even my broker couldnt help me!!! any lenders im -thinking commerical now that could HELP!!!!
BC Melbourne
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@bc-melbourne
Join Date: 2011
Post Count: 2
January 29, 2011 - 9:25 am
I think commercial requires more equity or deposit. I would like to know myself as they have good rent return.
dust27
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@dust27
Join Date: 2011
Post Count: 3
January 30, 2011 - 10:02 pm
I have just changed broker who deals with small/student accomdation all the time YA! last wednesday . still in the process of finding lender but it's looking possitve.
From what the broker is telling me, if i have 400k plus in equity then it's possible to borrow as a standard loan with LVR at 75%.
If i have less then 400k- then it be a commerical loan, LVR at 60% and rate is 9.5%
michaelandre70
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@michaelandre70
Join Date: 2009
Post Count: 34
February 1, 2011 - 9:40 am
You will have a time time finding it i assume. Try to ask th e people those live nearby, they might come in handy since they faced this problem earlier…
dust27
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@dust27
Join Date: 2011
Post Count: 3
February 14, 2011 - 12:07 pm
Sorry for the long delay in reply….been busy trying to get this deal through -and yes we settle TOMRROW! YA! finally…
The broker was quick and found us the lender we required. LVR at 80% and rate of 7.6% with a international bank HSBC.
And yes i did try to speak to the ppl next door- but they were all tenants/student so had no idea..><
Derek
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@derek
Join Date: 2004
Post Count: 3,544
February 15, 2011 - 12:31 am
This is one reason I tend to steer away from specialised property such as student accommodation.
While I do appreciate they can be nice little cashflow earners consider the difficulties you have had getting finance – the same issues will probably apply to any buyers in the future should you elect to sell the property. Finance difficulties can restrain the performance of the property from a resale perspective.
Having said that I do hope it works out well for you.
Mick C
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@shape
Join Date: 2010
Post Count: 1,099
February 15, 2011 - 12:45 pm
Dust27- your welcome and thanks for the feedback/ testimonial on our company website
Hope to finance your next adventure!
Cheers
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone Me
Same Banks. Better Rates. Served With a Passion.
kapilv
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@kapilv
Join Date: 2011
Post Count: 3
February 22, 2011 - 9:56 am
Hi guys! I am new so i want to ask why bank does not provide finance to student accommodation actually they need the loan and it should be supported by bank. is there any legal issue in this matter that bank consider to be risky.
Mick C
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@shape
Join Date: 2010
Post Count: 1,099
February 22, 2011 - 11:20 am
Kapilv WELCOME!
I have argued in length with the banks and the bank’s underwriter and the LMI provider about this same issue! sigh….
Here is their argument…which mind you, does make sense; but as you can read later on THEY have created this problem!
1. Student accommodation influx in rent and can not be supported- meaning during certain season and month the demand for student accommodation is less ( ie during x-mas when all the students goes back home etc..)
2. Student accommodation limits the type of use …ie can NOT be rented to NON-students and can NOT be used on the FHOG ( ie can not occupied the place UNLESS your a student)
3. Student accommodation are normally under 50 squ meters,
What does this mean? this mean it’s Hardier to SELL these places if the bank had to foreclose a loan! and they will be forced to sell under the original price.
I finance plenty of Student accommodation, the most common pitt falls are FHO and investors who wants to buy this investment at a 90% LVR ( only possible if you have equity in any another home- PPOR or IP)
End of the day, it;s not “hard” to get finance for Student accommodation… it just requires us broker to present the information about a client in a different and creative way and making sure we ask the right lenders.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone Me
Same Banks. Better Rates. Served With a Passion.
kapilv
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@kapilv
Join Date: 2011
Post Count: 3
February 25, 2011 - 7:46 am
Oh God so much legal headaches are there for students. thanks a lot to you for giving welcome and for posting a nice informative post.
angelinsydney
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@angelinsydney
Join Date: 2011
Post Count: 270
May 15, 2011 - 7:29 pm
Hi Kapilv,
I sensed you were a little confused, I could be wrong though. You may have been thinking we are discussing loans for students. That was not the case.
The issue here was obtaining a mortgage for a specialised property called "student accommodation." In other words, you don't have to be a student to find it difficult to get the home loan, student or not, if you're investing in a student accommodation under 50 sqm, higher LVR is required.
I hope this cleared things up for you.
Angel
Mick C
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@shape
Join Date: 2010
Post Count: 1,099
May 15, 2011 - 11:11 pm
angelinsydney wrote:
if you're investing in a student accommodation under 50 sqm, higher LVR is required.
I hope this cleared things up for you.
Angel
Angel meant to write a “lower” LVR
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone Me
Same Banks. Better Rates. Served With a Passion.
angelinsydney
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@angelinsydney
Join Date: 2011
Post Count: 270
May 16, 2011 - 1:52 am
Hi Michael,
Lol
Elementary… Mr Watson.
How embarrassing.