All Topics / Help Needed! / Investing in student lodge???

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  • Profile photo of DonmikDonmik
    Member
    @donmik
    Join Date: 2010
    Post Count: 2
    June 6, 2011 - 1:21 am

    Hi everyone,

    My name is Michael, I’m currently just starting to try build an investment portfolio. What seems to be a good investment opportunity has arisen however I’m a little unsure on one thing and was curious if anyone could give me some advise…
    I am currently looking at purchasing an apartment as my second investment, however, this apartment is part of a student lodge, so only available for rent to uni students,
    It is located across the road from the uni, so location I believe is no issue,
    But what I’m seeking are peoples thoughts/experiences of investing in student lodges?

    Any thoughts or ideas would be greatly appreciated.

    Regards,
    Michael.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 6, 2011 - 1:30 am

    Unilodge at broadway?

    There are many threads heere ont that including one recent one.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    June 6, 2011 - 4:40 am

    Hope you have deep pockets as financing it at any decent lvr will be difficult.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099
    June 6, 2011 - 9:00 am

    Sounds like the Uni lodge…

    If your buying the 1bedroom one- 160-180k— expect LVR to be around 50-60%
    If it’s the split lvl 2 bedroom one $220K+ — LVR can be achieved at 65-70%

    Since this is your 2nd IP, you MAY suit the bill to obtain finance for student accommodation if you have enough equity to back you up. However as a investor myself; having an student accommodation under your belt as your 2nd IP would inhibit your growth later down the track; as it has close to no Capital growth- just pure +ve rental yield.

    Also the above LVR are done case by case as well….

    it’s still possible to finance them…but def NOT easy!

    Regards
    Michael

    Mick C | Shape Home Loans
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    Same Banks. Better Rates. Served With a Passion.

    Profile photo of DonmikDonmik
    Member
    @donmik
    Join Date: 2010
    Post Count: 2
    June 6, 2011 - 10:11 pm

    Ok, so I’m getting this vibe that it’s probably not the best choice just yet…
    Thanks for your insight everyone!

    Ps. It’s not the unilodge, it’s an upcoming apartment block in Melbourne…

    Regards,
    Michael.

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992
    June 6, 2011 - 10:45 pm

    Hi Michael
    Just be sure you're not the one who in effect is providing cheap finance by way of low return.
    It's always good to wonder why an organisation or individual would part with a unit in a high occupancy location, 
    depending on who's servicing it , maintaining it, booking it, cleaning it etc.
    Cheers
    thecrest 

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
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    selling motels in NSW

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