Looking to secure a loan for an investment property?

Depending on your financial situation, you could purchase a property below 40 square meters. It is important to be aware that some lenders may have restrictions or specific lending criteria for small properties, which can impact your ability to secure a mortgage.

In Australia only 8% of all lenders might approve such a loan, and you would have to be able to put down at least 30% deposit, as well as cover the costs of Stamp Duty and other expenses involved in purchasing an investment property (for example disbursement fees, land tax if you are buying in Victoria etc.)

Investing in Student Accommodation in Australia involves several conditions and considerations:

1. Financing Restrictions: Lenders often have stricter criteria when it comes to student accommodation. As they aren't lenient to give out loans for this type of investment, you would most likely have to purchase it with cash only. This would be possible if you have enough equity built-up to release from your current home loan.

2. Lease Agreements: Student accommodations typically operate on shorter lease terms, usually aligned with academic semesters or years. Ensure you understand the lease agreements and turnover rates.

3. Location: Proximity to universities and colleges is crucial. Properties near major educational institutions generally have higher demand and better rental yields.

4. Property Management: Student accommodations often require more intensive property management due to higher turnover rates and the need for regular maintenance. Consider engaging a professional property management service.

5. Rental Yields: While student accommodations can offer attractive rental yields, they may also experience higher vacancy rates during university holidays. Assess the potential income against these periods of vacancy.

6. Market Demand: Research the demand for student accommodation in the area. High demand areas are more likely to yield better returns and lower vacancy rates.

7. Resale Value: Student accommodations may have a different resale market compared to traditional residential properties. Consider the long-term investment potential and resale value.

Before investing, conduct thorough research and seek advice from Mortgage Brokers familiar with the student accommodation investment restrictions.

As intermediaries, Mortgage Brokers offer a range of services to simplify your property investment journey. They have connections with numerous lenders, granting you access to a variety of loan products. This gives you on opportunity to find out about options you wouldn't know while looking on your own.

By understanding your financial needs and investment objectives, a Mortgage Broker can match you with appropriate loan options, potentially saving you both time and money.

That will depend on various factors such as the loan type, your credit history, and current market conditions. Below is the list of the most important ones.

1. Current Market Conditions: Interest rates can vary based on economic conditions and central bank policies.

2. Credit Score: Higher credit scores often qualify for lower interest rates.

3. Loan Type: Different loan types (fixed-rate, variable-rate, etc.) can have varying rates.

4. Loan Term: Shorter loan terms typically come with lower interest rates compared to longer terms.

5. Lender and Product: Different lenders and loan products offer different rates based on their specific criteria.

6. Down Payment: A larger down payment may help secure a lower interest rate.

Remember that a low-interest rate may be attractive, it's not the only factor to consider when choosing a loan product. Other important aspects include the loan’s features, flexibility, and the lender’s customer service reputation. The ideal loan product is one that aligns with your long-term investment goals and financial situation, even if it doesn’t offer the lowest interest rate.

We work across all major cities and areas in Australia. We specialise in Melbourne CBD and Victorian suburbs.