Student Housing: Can I Finance It?

In 2021, data shows that an estimated 1.3 million students had enrolled at higher education institutions in Australia. About three-fourths of the students lived at home or rented an apartment with roommates. That still leaves a sizable amount of students who require student housing. 

With housing for students, several risks exist too. Nonetheless, Mortgage House is among the lenders who will finance the purchase or development of this project.

Lenders take a look at the current market and search for saturation. Then, they take a look at historical occupancy rates. Investors should keep in mind that these housing units see a lot of turnovers. Thus, the maintenance costs for them tend to have a higher price tag than multi-unit apartment buildings.

Mortgage House works with investors who seek to invest in this property type. Investors should bring about 30% of the financing with them upfront. Lenders will fund 60% to 70% of the property’s value. Investors who do not have that much cash upfront can substitute collateral or bring a guarantor to the project. 

Our loan specialists have several tools that help them evaluate all applications efficiently. Then, they can find the appropriate loan type and home loan rates. Becoming a Mortgage House client leads to additional perks, especially for investors. 

Student Housing Conclusion

The number of students who require housing in Australia remains steady. Whether you seek to build new student housing or invest in an existing structure, it can remain at near capacity. Mortgage House works with investors seeking financing for this venture. Contact our loan specialists today.