Loan for unit on Gold Coast

We are thinking of buying another unit on the Gold Coast. Made some calls to local banks today was told that if the unit is classified as high density (building has more than 35 units) maximum LVR is 70%. I called pepper and they said if the unit is classified as high density they do not lend at all! Any suggestions? We have two units on the GC and we have done quite well out of them in terms of rent return (even now).

 

I never knew greater than 35 was considered high density. I thought it would be like 100 or something. Or maybe is bank by bank?

 

What banks did you speak to?
Not every bank has those restrictions and those that do can be postcode specific.
IMO buying an apartment in a large building is not a great investment, small blocks of units with no lifts or pools and low body corp fees are they way to go (just my opinion) Happy to be proven wrong if you don't mind sharing the values and net yields you're receiving (assuming you own in a large building?)

As Rolf said, it's time to speak to a broker, that's your best bet.

 

called pepper because i thought they would be easier to deal with

 

Talked to Bendigo, ING, Rams and Pepper (talking only nothing specific).
Happy to share the values: 1. a large one bedroom (over 100 sqm2) worth about 330k. in a high rise building with lifts, pools tennis courts etc but low body corp $3400 per annum. Rents for 480 a week, always been rented and has always attracted professionals for some reason.
2. two beds two bathrooms worth about 330k rent for 470, always been rented as well no problem. in a low walk up with pool, body corporate a bit steeper for this one around $5000 per year. Bought this one because its literally 50 meters to the beach.
My only problem with small block of units on the Gold Coast is that 1. they can be expensive 2. because of the lack of facilities they do not attract great rent or great tenants.

 

Those banks are probably at the bottom of the list when looking to fund in my experience so it doesn't surprise me you were told what you were told but you do have options with other lenders.

The apartments you speak of, I'm assuming the large building has a significant sinking fund for future repairs/maintenance? Most larger building body corp runs at approx $5200 pa so that is cheap!
The smaller buildings in my area sell for between $330K and $350K and rent for $450+ per week and they're mostly 2 bed 2 bath 1 or 2 car with body corp about $50 a week. No problems getting and holding tenants, guess it depends on the area hence why lender restrictions are generally postcode specific.