LENDING OUTSIDE THE BOX
Talk to most investors about their dream property and they would probably choose a solid brick house on a prime section, or a renovated apartment in a well-located area. But for some investors, the quirkier, more unusual homes can offer up exciting investment opportunities.
Occasionally, investors are prepared to look beyond the ordinary and invest in homes that are a little outside of the box. Some might even consider a home that comes flat-packed in a box. Over the past few years, non-traditional properties have become more common as people look for alternatives amid the ongoing housing crisis. Studio apartments, tiny homes, and prefabs have all risen in popularity.
Alternative lenders, major banks and builders say there is increasing demand for prefab homes, transportable housing, and tiny homes, as people look for options in an expensive market. Small studio apartments and unusual commercial properties can also deliver good investment returns.
Unusual properties have their pitfalls, however. Most banks are unwilling to lend on unconventional properties, and investors face challenges when it comes to securing loans. Banks have strict criteria for lending , and prefabs.
