Units and Apartments – What Size Does the Bank Need Them to Be?

Home buying & selling
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Its important to make sure that any property investment that you make provides capital growth and consistent, attractive rental yields. There are a range of investment options available to you and we strongly suggest that you do your homework before making any purchase, especially for properties bought off the plan.

1. Returns:

You need to be confident that you have a clear idea of expected rental yields as well as the range of expenses applicable to the site – rates, repairs and maintenance, body corporate fees and, if applicable, management fees.

2. Property size and features:

One issue in particular is the actual size and use of the property you wish to purchase – especially with regards to apartments where a property’s dimensions can be crucial and banks will often refuse funding on this basis.<

a) Size: Our recent experience is that banks will comfortably fund apartments of around forty square metres (not including the balcony or car parking spaces) located in prime residential areas however lenders may be reluctant if the site is much smaller than that or is located in an emerging market where yields are less certain.

b) Use: Some banks are reluctant to fund small properties for first home buyers or sites that are used as student accommodation or serviced apartments or apartments subject to management agreements. Note also that, if banks do provide the finance, they will often set their LVR’s at lower levels than traditionally used for larger homes.

The lesson here is that, whilst small apartments can be a great investment, it’s important to confirm the exact details of your target purchase with us before making an offer.


About Intuitive Finance

The team at Intuitive Finance will listen to your needs, undertake a comprehensive review of your current financial position and then provide a clear, detailed and comprehensive investment strategy for you to put in place. We have written close to a billion dollars in loans and our team has access to over 500 financial products from more than 30 lenders covering a myriad of requirements – from home loans for repeat and first home buyers to first time and astute investors – and is perfectly placed to help guide you through the available options


The financial industry is a dynamic industry – continually evolving and changing. Whilst every effort has been made to ensure its accuracy, no guarantee is given that the information contained herein is currently correct. To the extent permitted by law, Intuitive Finance accepts no responsibility or liability for any loss or damage what so ever (including direct and indirect) to any person arising from the use or reliance on the information detailed here.



Andrew Mirams

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