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Student Accomodation

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Simon | 09 May 2013, 04:20 PM Agree 0

Just wanting to get some people advice on student accomodation. I have recently looked at some properties that have great rentals which in turn will put the property very close to being positively geared.

Is this something that would be recommended or people suggest to steer clear of these sorts of properties?

Not quite sure as don't know anybody who has been into this side of the market so any advice would be recommened.


  • Geoff Mckenna | 10 May 2013, 04:31 PM Agree 0
    Hi Simon, suggest you have your finance person investigate if they can do student accommodation at the LVR you require, because of the limited resale market (i.e. only students or investors) may lenders do not do student accommodation or do so at reduced loan to value ratios.

    Geoff McKenna
    Guidance Mortgage Brokers
    0405 447 131
  • Eos Property | 28 May 2013, 09:00 PM Agree 0
    Hi Simon.

    As Geoff has stated many banks have limited LVR ceilings on specialised property, including purpose built student accommodation. For this reason growth may be limited and capacity to release funds for other investments compromised.

    If the property you are looking at is only 'very close' to being positively geared I would strongly urge you to keep looking. Minimal cashflow, questionable growth & probably low LVRs don't make for a good investment.
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