Properties Banks Don’t Like

 

 

Company title- Instead of a strata title, an apartment might be on a company title, which means a company owns the block and each apartment is considered a share. Investing in a company title property means you become a shareholder in the company and do not own the land directly. Banks deem these harder to sell because new buyers are more likely to be put off by not owning their own land

 

Heritage listed- Banks believe heritage listed property is a bad security, because rules prevent owners from altering the property to add value and therefore makes it harder to sell

 

Hotel/motel conversion- Sometimes a hotel will be bought, closed down and converted into individual units. Lenders view them as tough to sell because they maintain their hotel feel

 

Leasehold- Sometimes a property comes without a title and a borrower actually buys it on a long-term lease from the government. An example of this is Woolloomooloo Wharf in Sydney, where the properties are over water instead of land, so there is no title. Despite the fact that the government leases are usually close to 100 years, many borrowers still prefer a freehold arrangement

 

Rural zoning- Out of town properties, such as farmhouses in rural locations, attract a smaller pool of buyers than those in residential zones. Most lenders will also only go to around 60% LVR, because it is too hard to get mortgage insurance.

 

Source: Your Investment Property Magazine

 

 

 

About Port Douglas

Port Douglas real estate - Real estate in Port Douglas is now sought after the world over. Our passion for where we live stems from Port Douglas being the only place in the world where two natural, world heritage listed sites (the Great Barrier Reef & Daintree Rainforest) exist side by side. If you would like buy or live in your own piece of paradise, please browse our real estate listings http://www.realestateportdouglas.com.au The views expressed in the Port Douglas blogs are not those of Century 21 Port Douglas Real Estate nor the Century 21 franchise.
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