Hi all, I've been lurking for some time and finally decided to register. First off, let me say thank you to you all for a very informative forum, I have learnt alot.
Now for my situatian, and in turn, my question. I am in the fortunate position of being a member of defence, as such, I get heavily subsidised rent (130 p/w for a double story house in Melbourne). I have one property in Keperra (Brisbane) that after 5 yrs is CF+, I wish to buy a 2nd property but am not sure which way to go. Is it better to get a 2 bed unit in the metro area close to uni's and all amenities or go regional and get a house?
I'm sure there are pro's and con's for both scenarios. Thanks in advance, Brett.
HI there
you will have to clarify what your goals are – are you aiming for capital gain – then perhaps the house would be the better option (given the land content) -are you going for yield – then the unit may be the better option.
If you are fairly young then perhaps looking for capital gain is the go – and if you are on a reasonble defence salary then you can probably wear some negative gearing.
thanksI fully understand that my comments will most likely be considered as biased, however it is my opinion that the capital growth difference between houses and units within a close proximity to the CBD of Brisbane (5k) is almost the same. The shift in demographics and with affordability as it is combined with Council requirements regarding post 1946 housing in these inner areas (character housing) has to a great degree levelled the playing field. If you can no longer remove a house from the block of land it could be argued that the land is actually devalued.
My 2c worth – happy to discuss
Jon
Thanks for taking the time to answer…..much appreciated, it would seem however, that as with everything, there are differing opinions. I guess I've just got to see whats around and take a punt.
I generally would never buy a unit. You can have problems with strata issues and you lose control.
Also buildings depreciate while land appreciates. With a unit you don't have much land content, so a house should be better in the long run.
Another point – it is difficult to add value to a unit – such as extensions etc!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Although I hold a couple of units , I tend to agree with Terry if you are thinking of a longer term hold. Our approach to units has been that we first look if we want to buy into the body corporate, then we look at the actual unit. If the management group keep the place in good repair and order , has meetings and plans, it is usually worth looking at and will be a good rent/sell proposition later. Over the long haul having absolute control and full exposure to the land value should give better results.
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