{"id":6290,"date":"2015-11-08T01:00:32","date_gmt":"2015-11-07T14:00:32","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=6290"},"modified":"2015-11-08T01:00:32","modified_gmt":"2015-11-07T14:00:32","slug":"does-size-matter","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/","title":{"rendered":"Does size matter? – Andrew Mirams"},"content":{"rendered":"

 
\nThere has been a lot of discussion about the impact of foreign buyers on the Australian market, well the brains behind the most respected website catering to that market has some interesting insights and we ask our finance expert, Andrew Mirams<\/strong><\/a>, if size really matters to the banks.
\n <\/p>\n

Transcript:<\/h4>\n

Kevin<\/b>:\u00a0 It\u2019s important to make sure that any property investment you make provides capital growth and consistent, attractive rental yields. That\u2019s according to Andrew Mirams from Intuitive Finance, who joins us.
\nGood day, Andrew.
\nAndrew<\/b>:\u00a0 Good day, Kevin. Thanks for having me.
\nKevin<\/b>:\u00a0 That\u2019s a pleasure, mate. Are you telling me that to the banks, size does matter?
\nAndrew<\/b>:\u00a0 Absolutely. I guess the key in today\u2019s market with the amount of new property investment and the new projects coming onto the market, this probably does affect more of the newer projects than the old or existing properties, but absolutely, square meterage of a property definitely does matter.
\nAs a rule, generally, at 50+ square meters, it\u2019s viewed as a pretty standard deal. Under that, down to 40 square meters, we can certainly finance. Anything under that becomes really, really difficult just based on the pure size.
\nKevin<\/b>:\u00a0 Yes, , I remember when the benchmark was 50 and it was difficult to get lend on anything under 50 square meters. But once you get down to 40 and even under, it\u2019s almost like a motel room really, isn\u2019t it?
\nAndrew<\/b>:\u00a0 It is basically a studio. Yes, it\u2019s basically a bed and everything all in the same room. There\u2019s not a whole lot there. The reason they don\u2019t like it is because of the marketability. There is a very small market for those properties. Obviously, the bigger units \u2013 a one- or two-bedroom unit, and then you move up to your houses \u2013 there\u2019s a much bigger concentration of people wanting to buy those.
\nA studio apartment or a student accommodation \u2013 which generally attract these smaller sized properties \u2013 are very segmented and very specific. The bank will always look at their worst-case scenario and what\u2019s their exit clause should the client not be able to meet their repayments. There\u2019s just a small market, and small apartments tend to be very difficult to be able to sell should they have to.
\nKevin<\/b>:\u00a0 One of the attractions, of course, for those small apartments will be the price, making it very, very affordable, but then you have to look past that and, as you pointed out, how marketable are they? Is that, in two senses, basically, whether you can resell it or even whether you can let it?
\nAndrew<\/b>:\u00a0 Absolutely. Letting, they generally get a pretty reasonable return \u2013 they\u2019re smaller units \u2013 but the issue, yes, is the salability and things like that. With the smaller units, the smaller type style, you\u2019re right, they attract an entry level. But often, those entry level people don\u2019t have their full 20% deposit and need to mortgage insure it. The mortgage insurers just won\u2019t go near anything under 40 square meters, and often we have issues at anything less than 50 square meters if people are looking to borrow more than the 80%.
\nKevin<\/b>:\u00a0 Yes, generally, those smaller apartments are used for either student accommodation or serviced apartments, and the income from those is not really all that good. Also, the costs of running them \u2013 the management fees because they\u2019re cleaned so regularly and turned over so much \u2013 Andrew, that\u2019s another consideration.
\nAndrew<\/b>:\u00a0 Absolutely. They also have management in there so you\u2019re paying for people to maintain the properties. Often, there will be lifts and other style of things that all are high maintenance. It might be a small apartment that gets an okay rental but with your overheads and things like that, that has a definite knock on it and affects the price and its saleability and why the banks don\u2019t really like them too much.
\nKevin<\/b>:\u00a0 There you go: property size and use does matter to the banks. That good advice coming from Andrew Mirams at Intuitive Finance.
\nAndrew, thanks again for your time.
\nAndrew<\/b>:\u00a0 My pleasure, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"

  There has been a lot of discussion about the impact of foreign buyers on the Australian market, well the brains behind the most respected website catering to that market has some interesting insights and we ask our finance expert, Andrew Mirams, if size really…<\/p>\n","protected":false},"author":176692471,"featured_media":5275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,13,25],"tags":[101],"class_list":["post-6290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-latest-story","category-sponsored-channels","tag-podcast"],"yoast_head":"\nDoes size matter? - Andrew Mirams - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Does size matter? - Andrew Mirams - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"  There has been a lot of discussion about the impact of foreign buyers on the Australian market, well the brains behind the most respected website catering to that market has some interesting insights and we ask our finance expert, Andrew Mirams, if size really...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2015-11-07T14:00:32+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"Does size matter? – Andrew Mirams\",\"datePublished\":\"2015-11-07T14:00:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/\"},\"wordCount\":697,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Kevin Turner\",\"Latest Stories\",\"Sponsored Channels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/\",\"name\":\"Does size matter? - Andrew Mirams - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2015-11-07T14:00:32+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/does-size-matter\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Does size matter? – Andrew Mirams\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\",\"name\":\"rolanrush\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"caption\":\"rolanrush\"},\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/author\\\/rolanrush\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Does size matter? - Andrew Mirams - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/","og_locale":"en_US","og_type":"article","og_title":"Does size matter? - Andrew Mirams - Realty Talk","og_description":"  There has been a lot of discussion about the impact of foreign buyers on the Australian market, well the brains behind the most respected website catering to that market has some interesting insights and we ask our finance expert, Andrew Mirams, if size really...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/","og_site_name":"Realty Talk","article_published_time":"2015-11-07T14:00:32+00:00","author":"rolanrush","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rolanrush","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/"},"author":{"name":"rolanrush","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"headline":"Does size matter? – Andrew Mirams","datePublished":"2015-11-07T14:00:32+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/"},"wordCount":697,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/#primaryimage"},"thumbnailUrl":"","keywords":["podcast"],"articleSection":["Kevin Turner","Latest Stories","Sponsored Channels"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/","name":"Does size matter? - Andrew Mirams - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/#primaryimage"},"thumbnailUrl":"","datePublished":"2015-11-07T14:00:32+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/does-size-matter\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"Does size matter? – Andrew Mirams"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d","name":"rolanrush","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","caption":"rolanrush"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/6290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692471"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=6290"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/6290\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=6290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=6290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=6290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}