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Sam M.
Sam M.
Lane Cove, NSW

I am looking at an apartment off the plan in Newtown… completion late 2019. It is 50 square metres plus a small balcony and a garage on title. Before I pay the deposit can I ask if it is possible to get a loan on this type of property as an investment?

9 months ago


Hi Sam,

Great question, firstly how many other apartments are in the development? Lenders generally like development that have less than 30 in a block.
Secondly how many stories? Again lenders generally prefer building that are less than 4 stories high.
The third thing is, to have a solicitor read the contract very carefully, while the developer may tell you it is 50 sq. now. Some contracts allow for the design to be varied for structural or council approval and the end result is slightly different. For example you end up with a 45sq unit with a 10 sq. balcony which is treated very differently to a 50sq. unit with a 5 sq. balcony.
Happy to discuss this further
Awesome Albert

Hi Sam

Agree with Albert here. I will also add that the risk you take purchasing off the plan is that you may struggle to obtain a loan when the time comes to settle on the property. Lenders have changed policies dramatically over the last 6 months; and with the Royal Commission into the banking industry things could get tighter.

you will need to ensure that you have a healthy surplus after taking into consideration your living expenses.

Sam Zammit
South West Lending Solutions
P: 1800 824 325
M: 0414 727 308
E: sam@southwestlendingsolutions.com.au
W: www.southwestlendingsolutions.com.au

9 months ago

Hi Albert and Sam ... there are 12 apartment, 4 stories. My solicitor is reviewing the contract and thanks Albert, I have heard of similar problems. If I did get the finance approved now how long does the approval last?

Hi Sam,

Given the answers you already have been given and the additional information you have provided there is a chance that you could get approval for this property when it is completed. You have zero chance of getting an unconditional approval now.
Nobody knows what your financial position will be next year, how property values will change or how lender policy and government regulation will change.
Tread carefully!!


Hey Sam,is the purchase for owner occupying or renting it out to tenants? This may be a factor as well for lenders.

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