Can anyone inform me on the pros and cons of buying a block of units. Thanks!
Having to pay for it… That’s a con.
sure, that part sux. but what are the advantages of buying a whole block of units. or is it better to stick with houses as IP.
Pros:
* Better rental yield
* One set of rates
* Lower maintenance
* Lower land tax
* Easier and less costly to do internal renovationsCons
* Possibility to strata title and sell individually later and therefore have higher capital growth
* Lower LVR if more than 4 units
* Usually less land is allocated to each unit
* Body corporate fees
* Less capital growth
* Lower control over capital improvements/renovations externally
* All (or many) eggs in one basketHope this helps
cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
hi propertypower
I’m looking at a block of four units.
does this void the strata if i own all four of them?
What do you mean by lower LVR
Cheers
NickoHi,
Just a quick note on buying blocks of units. I know from experience that some major lenders are funny about lending money to buy blocks of units where there is the same owner for all the units. Something to do with overexposure i guess?
I am looking into buying a small block of units myself at the moment (2 units), and the figures stack up excellent!
I am not sure if i read the comment correctly that was placed above, but there is definetley individual rates notices for each unit (in my case anyway).
I see the benefits though as being excellent; maintenance and general gardening upkeep would be lower than usual (per property) because you could split the cost between two and you would be getting the power of added volume.
Like anything, do your due diligence, and let the figures speak for themselves!!!
Robert Crick
[biggrin]Must admit never heard of a major lender not wanting to lend against a block of units. I have 2 blocks in Brissie one a unit block of 18 14 x & 4 x 2 and the major lender concerned never had a problem.,
Sometimes on a strata title block the lenders dont like to have a concentration in the 1 development but certainly not on a non strated block.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
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Many lenders consider more than 4 units as commercial rather than residential, hence the lower LVR (loan to value ratio).
I own several blocks of units (on one title) and only receive one rates notice per property. If you are receiving multiple rates notice, are they strata titled?
does this void the strata if i own all four of them?No. In fact, this can be to your advantage if you choose to sell them as you can sell one or four, your choice.
Wendy
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Hi,
this one is right up my alley. I have a block of 4 units in Geraldton wa. there are no strata fees. I am in the process of making the two titles into one then into 4. its the only way the council will let me do it. they’re on the market now, if I get no offers then once the subdivision is finished I’ll sell them off seperately.
here’s the link if you want to have a look….
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103869682&f=30&p=10&t=res&ty=&fmt=&header=&c=14480344&s=wa&tm=1174132335 I highly recommend units if you get a good group. mine haven’t been vacant for more than 3 weeks since they were built in 1991. these were my first investment buy and helped me get over the ‘what if i lose a tenant and have to cover the mortgage’. this way the other 3 help to spread the load. hope this helps.
Regards
LisaHi,
this one is right up my alley. I have a block of 4 units in Geraldton wa. there are no strata fees. I am in the process of making the two titles into one then into 4. its the only way the council will let me do it. they’re on the market now, if I get no offers then once the subdivision is finished I’ll sell them off seperately.
here’s the link if you want to have a look….
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103869682&f=30&p=10&t=res&ty=&fmt=&header=&c=14480344&s=wa&tm=1174132335 I highly recommend units if you get a good group. mine haven’t been vacant for more than 3 weeks since they were built in 1991. these were my first investment buy and helped me get over the ‘what if i lose a tenant and have to cover the mortgage’. this way the other 3 help to spread the load. hope this helps.
Regards
Lisa
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