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Hi, the new LVR rules hasn't affected banks' policies on apartments. Most wanted a min 20% deposit on apartments anyway, sometimes more depending on size. In saying that, it was sometimes possible to get 80% + LVR lending on owner occupied apartments (case by case) so this will now be affected by the new policy, at least in the short term.
The new LVR restriction may actually favour units and apartments, as home buyers are some what shut out of the more expensive full section homes and half section town houses, and may go with smaller units and apartments instead.
The new LVR restriction may actually favour units and apartments, as home buyers are some what shut out of the more expensive full section homes and half section town houses, and may go with smaller units and apartments instead.
In a roundabout way it might, smaller units still have their own restrictions though (especially when under 55-70sqm). Buyers may still be over the 80% LVR mark even with a cheaper property that's a unit.
It might be better to look at a cheaper full and half sections further out from town/CBD rather than a unit/apartment closer to town/CBD. So that could be where the buyers head rather than apartments. Difficult to know and could be a combination of both.
I agree with Craig, most Banks only go 80% anyway and many less than this if the Apartment is 55 sm or less. Some blocks in Auckland are virtually unmortgageable now due to their size and issues. If looking to buy anything like this always ask to see the last two years Body Corp minutes as they should highlight any known issues.
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