Hi,
My name is Jared and I'm 22yo. I currently have one investment property which is positively geared and I am currently living in my own place in Adelaide.
I have been looking to invest in apartment style inner CBD properties in either Adelaide or Melbourne but I am having some trouble meeting the banks criteria.
Most banks I have spoken to so far have said that the property must be over 40 metres square and they also don't like STUDENT ACCOMMODATION because of the risk factor involved. Some of the properties I have been monitoring are not necessarily student accommodation because you can owner occupy or have your own property management team manage it but they are still reluctant if there is over 80% students living in the complex.
Has anyone else come across this type of dilemma before and how did you work around it?
Thanks
Jared
Hi Jared
Welcome to the forum and i hope you enjoy your time with us.
Regret to say neither of the mortgage insurers will provide cover on such security so i hate to say you wont get more than 80% lvr.
To be honest depending on the actual size of the property i am surprised you have had anyone offer you more than circa 60%.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jared
I agree with Richard. These properties will only appeal to other investors and will therefore struggle with any real capital growth. In many Australian cities especially in Melbourne there are 1000s of apartments coming out of the ground. With reducing student numbers these type of investments are a bad choice. I suggest you look at other options
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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