Ok im still checking out north east nsw but have a question.If you had to chose from the following properties that are valued the same. Which one would you go for better gains in say 5 years.
1# A nicer newer unit or townhouse a short walk from the beach or
2# A older 3 or 4 bed house several blocks back from beach in lesser area but on a bigger block.Now i know there are many variables but i am sure many investers are undecided like me as to which way to go.
Idealy i would go a house but to keep below $400,000 it puts you way out of the desirable areas which may struggle to see the growth. Im looking around $350,000
What would you guys do ???.I would definately go for the lesser house. I like things that you can value add and I like land!!! The only time I would buy units is if I was to buy the whole lot of them!
Hi Devo
I agree with Xenia. The unit would have to have be pretty special, i.e. have very good capital gain expectations, for me to forgo owning a decent amount of land. Good luck.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
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Hi,
I am not very experience but all my IP investment are land+house. I am a bit greedy here, the land size must be > 500 sqm, the bigger the bonus. so far my investment has good captial gain, it all due to land increase in price over time.
Last year, we decided to build our investment portfolio ie to include apartment. We put a deposit for booking a unit at southbank in Mel. On that night, i went to internet to search for properties for sale at the same area, it turn out that with the same amount, i can get 1 room extra. I decided not to proceed the purchase and lost my deposit. I am glad that i did that otherwise i would have lost more money …there is corporate/maintenance fee to pay …etc
I think the capital gain for apartment is not that much compare to house with land. My friend who bought her IP apt 18 yrs ago and sold last year with captial gain of 100K. (this apt is with Sydney harbour view). as for house+land, it is quite easy to achieve capital gain of 100K.
cheers !
MingOK they are pretty much my thoughts as well.So if you had to choose between say a coastal unit around pottsville or similar area or a house and land at say murwillumbah or similar. You would go the house and land.
House and land for sure! Add value to the problem house….cosmetic reno..simple clean up. Cheers.
Okay, my first question is can you actually do anything in the future with the land (can you strata or subdivide or enlarge the property, what about the access, plot layout, planning scheme etc…)? If you can't develop the land in the future, it has little to add to the deal (even if it's an acre!). If you can develop, consider the house more favorably.
Then, second question is can you add value to the house? If you can, and you will make a 20% profit within six months (from close to sale) then, again, consider the house more favorably.
Third question is what are capital gains likely to be in your area on both the unit and the house? Are they going to be high enough to make either deal a winner?
Fourth question is are you buying to hold as +ve geared deal or -ve geared, or selling after developing or whatever. The deal has to fit your "method" of making money. Does it?
Once you can answer all of the above then you can start to decide which way to go.
However, from what you are saying, neither deal really jumps off the page profit wise. Are you sure you should be buying either? There are plenty of better deals out there.
Almor
Wow .Good comments there. Thankyou.As for what im looking for. Maximum profit from minimum cost to me. Simple in theory.
Yeah i agree with above comments. wots the rule ' land appreciates, buildings depreciate'.
Too many overheads with units, usually a better return on houses. And gees I hate body corps telling me what I can and cant do.
goodluck
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