Hi
I am relatively new to property investing and have one property. As stated above its a 1 bed fully furnished apartment in a nearly new block. I nearly didnt buy it as its only 1 bed but it returns $330 a week on a mortgage of 170k. I would like to buy more but am still nervous about resale values and having all eggs in same basket! Should i try to diversify or get these apartments[confused2] if I can find them?
Jim
G’day Jim,
You need to set your goals and invest accordingly. If cashflow is important to you then it sounds like a good opportunity. However, the LVR on a 1 BR apartment will be low and therefore you need to have a bigger deposit. The capital growth for a 1 BR apartment is lower as well.
Assuming a 70% LVR and purchase price of $170k, you would need around $60k deposit (including closing cost). With that kind of deposit you could buy a bigger property with better capital growth prospects and if you invest in the right areas you may still be able to get positive cashflow.
aGood luck!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
Jim
Sorry i dont agree with Sanjiv if the unit is greater than 35 Sq M internally then you would easily obtain 90% LVR.
I think 1 bedders are a great investment so much so that i bought a block of 14 x 1 & 4 x 2 inline.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
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Jim,
Sorry, I should have specified the LVR is based on the internal size of the unit.Richard
I thought the units had to be over 40 sq mts to have LVR of 90%. But thanks for clarifying.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
thanks guys – keep the advice coming!
it’s 41m2 internally and I paid $215K.
having just read steve’s book, does the 11 second rule still apply in 2007?
Jim
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