I am considering a dual key unit for sale which is in a holiday letting pool, but also able to be owner occupied, however NAB has told me they 'do not lend resort, holiday park or contained apartments'. Is there any reason for this? Are most lenders going to be the same?
Dual Key is one issue. Not impossible. Holiday Letting Pool is another issue. Afgain, not impossible , but banks dont like it. So when you put two tough items together... and for investment.... in this post APRA era..... yeah I dunno..... I suspect someone will do it but it may be like finding a needle in a haystack and at a much lower LVR
Policy. Based on risk. Income is far from assured and long term contracts with a (hotel) operator have failed in the past and left whole buildings vacant. Or poorly managed...Imagine if Accor conducted a scheme to rake in 100 investors through the one bank ? Instead of them buying the property...It lumps the whole risk on the one lender. Banks make their own rules. Usually based on risk factors and experience or not wanting to gain the experience. Others may offer a low LVR etc Some postcodes are no go zones as well. Some property types are prohibited too eg too small, hotels etc
Typically, the stock type is ok for people that dont need to borrow and are looking for income. as a growth asset, these things can be very hobbled by lack of access to decent finance. They arent necc bad investments per se.......... ta rolf
