Student Accommodation

[younginvestor]

Hi there ppls.

I am new here and i am wondering about Student Accommodation. These are small studios, on their own strata title. they are cheap ,but return very nicely. (rents are high)

I was wondering if anyone if anyone has them or invested in them or have any experience in them. I am finding it hard to get finance, banks only allow up to 65% LVR because its under 50M sq, im talking to some banks now.

Young Investor

[vilablonde]

Hey there young investor,

I am new here but yes you are correct, MOST banks don't like student accommodation as although the savvy investor knows they can be great for positive cash flow there are not that many out there! Sorry to those that are on this forum, you obviously all are savvy!

Remember banks lend with the end always in mind, in other words, safe lending margins are based around how quickly and cheaply a bank can move a property if necessary. You could look at a business/personal banking broker, I know a good one in Melbourne that could help you out.

I work for a bank so unfortunately I can't help you out, but hey anyone out there needs a straight forward mortgage, let me know!!!!!!

Good luck and keep me posted on how you go!

:thumbs: