Hi
I am a true believer of houses but apartments/units. These are some of my reasons:
1. houses come with land, land appreciate in value,this is bonus on top of the +ve cashflow you generate)
2. flexibility – you can renovate anyway you like so long as it’s within the building standards without having to go through body corporate
3. houses are unique unlike a whole complex of apartments all look the same
4. most people would prefer to live in a house as it offers them space and privacy and hence greater demand
5. unecessary costs such as body corporate fee can be avoided.
I would like to expand my search for properties to include houses and apartments/units but having problems seeing future prospects of buying apartments. For those who invested in apartments, I would love to hear from you.
CheersYou’re absolutely right about appartments, i have two, and am currently looking into a block of units.
the problems i find are:
usually there’s already a carport, so you cant increase value that way, and if there isnt a carport you have to convince all the other owners to fork out money to have one put in.
usually a snappy repaint, some carpet and a cheap kitchen can increase the rent and value of the property.
bodycorp and council rates, you need to have an accountant who will put in a 221D to the ATO for you, this costs money but frees up the 2000 odd dollars you paid in those fees. and reduces your income tax per fortnight.
If you buy in a good area the tennants will police themselves and are the first to complain about loud parties etc
bodycorp and council rates, you need to have an accountant who will put in a 221D to the ATO for you, this costs money but frees up the 2000 odd dollars you paid in those fees. and reduces your income tax per fortnight.Could you please give me more details on 221D and by lodging with the ATO how will it free up 2000 odd dollars?? Thanks heaps.
liviwell,
I generally agree with you, except for point 4. Do you have any hard facts about that or is it just your opinion? What age group/area are you talking about?
Almost everyone I know in Brisbane (aged around 20-28) prefer appartments. I guess because none of us enjoy tending to gardens. And there’s probably only 1 in 10 people I know that own pets.
-Ian
Hi Liviwell,
There has been some argument lately that we should be preparing for the baby boomers to retire. Apparently when they do they are likely to want to live in flats/units/townhouses. I suppose they will need to downsize. As to whether they will rent or buy, who knows. Either way, I suppose that means an increase in demand = increase in value, depending on the supply of course.
Cheers,
Sue [
]“Be careful not to step on the flowers when you’re reaching for the stars”
liviwell,
what you do is have all your bills etc sorted out, this includes your depreciation schedule, rent coming in etc. get a good accountant and they fill out a form called a 221D.
this is basically asking permission to the ATO, that instead of getting your losses at tax time, they be reduced from your income tax fortnightly. you will have to have all paperwork to do it, and any changes ie interest rate rise etc you have to put in another claim. you are also at a higher risk to being audited by the ATO. so you really do need to have your s#$t together.Hi
The problem I have with apartments is that if you live in it for a bit like to do renovations and stuff you can’t work late at night if you have to drill and hammer away. I lost track of time one night when I was drilling holes in my kitchen for a new unit on the wall and I drilled away into the concrete wall for about 5 Min and there was a big load yell at my door…” CAN I SEE YOU PLEASE” Yea sure what’s the problem it’s 11pm at night time and I am trying to sleep….I had no idea and lost track of time…with a house you might get away with it. Anyway this will prob be me last post for the year my Holidays starts on Friday and I will be back early Jan. Have a great and save Christmas….Bring on the beach[8D]
Cornel
Hey Cornel,
So hows everything with your apartment going? anyway man good to see you on here, enjoy your holiday man, and make sure you thinking about us all, ….. lol, you lucky ba$tard…. i cant even take time off work.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
liviwell,
what you do is have all your bills etc sorted out, this includes your depreciation schedule, rent coming in etc. get a good accountant and they fill out a form called a 221D.
this is basically asking permission to the ATO, that instead of getting your losses at tax time, they be reduced from your income tax fortnightly. you will have to have all paperwork to do it, and any changes ie interest rate rise etc you have to put in another claim. you are also at a higher risk to being audited by the ATO. so you really do need to have your s#$t together.Hi Shaunwalker
Thanks for the details but why would I have net rental losses after reading Steve McKnight’s book []plus the penalty is too great if I get it wrong, not worth it. Just a small timing difference. Not worth paying an accountant to save on a bit of bank interest. That’s my view.
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