Studio Apartment Loans

2010 March 22
by iggy

Are you a fresh graduate?  Have you just settled into a new job?  Is your budget limited?  If so, then maybe a studio apartment is for you.  These studio apartments are very affordable and perfect for those just starting out their life on their own.

They are small, and offer just enough space for an individual, a perfect bachelor’s pad.  Depending on the area where these studio apartments are located prices may vary, but in general they are cheaper than buying a fully detached home.

The problem with getting a studio apartment where funds are not available is that no matter how reasonably priced it is, you will not be able to purchase it.  This means that you have to resort to getting a home loan.  By getting a home loan, you will be able to purchase the studio apartment on installment, over a number of years depending on the loan agreement.  However, that is easier said than done.  This is because it is a well known fact that most banks and lenders will not approve, or will be hesitant to approve a loan where what is sought to be purchased is a studio apartment.  The main reason is  due to the small size of this type of apartment it may be difficult to sell in case the repayments are not made, and the borrower defaults.  Of course selling a studio apartment may be easier if it is located in a nice location with access to the city centers and transportation hubs.   However not all studio apartments are made the same.  Some may be good buys and easy to sell, while others may be difficult to sell because of certain problems such as its location, including the type of nieghbourhood it is placed in.

Banks and lenders often see studio apartments as a tough call.  Although they may be cheaper and easier to repay, on the downside, where the borrower fails to make the repayments, the borrower may lose money because they will be unable to sell the property, which means that the bank will also lose money.  However, some lenders are more liberal and are willing to take the risk of granting home loans for the purchase of studio apartments.

In order to find  the few lenders who are willing to grant this type of home loan it would be best to consult the experts on home loans.  With their help, it would be much easier to access loans for studio apartments, and for those with low budgets to finally have a home to call their own.

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