Hi,
I have noticed a number on inner city sydney studios in security complexes (some with parking) for around 200k. They are returning 220/week in rent and to me seem fairly good valve. I understand that the capital growth will be minimal, that strata etc needs to be considered and that the tax offsets are low but with the increasing pressure on rent levels the return could be OK for a small investment.
i am just starting out in this game and am looking to get a taste early without getting a burnt tongue. Am i missing something here in terms of the viability of these properties as investments
Thanks for your help
Have a look at this post
https://www.propertyinvesting.com/forums/property-investing/help-needed/4322681I think if Capital growth is minimal there is no point in investing in these things.
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
When you're first starting out then Capital Growth is the way to go. You wanna build up equity in a hurry to build up your portfolio quicker. When you're more settled in the future then you can look at +cashflow properties to balance things out abit.
hi there,
I agree with Masih when it comes to the IP strategy.
I don't advise anyone to buy studio units in sydney as they are old crappy and will get you least amount of appreciation and most amount of headaches when it comes to maintenance and all the strata you have to pay.
I suggest for you to look at houses that are old but with a sizeable land 650sqm+ at least as you will be able to mayble later subdivide, renovate and claim more deductions etc. Land appreciates in value where house, unit etc depreciates in value!
cheers,
michael
Michael4 wrote:I suggest for you to look at houses that are old but with a sizeable land 650sqm+ at least as you will be able to mayble later subdivide, renovate and claim more deductions etc. Land appreciates in value where house, unit etc depreciates in value!I said in one my posts in another forum; given there is demand, even a rathole can increase in value. While you can claim depreciation on the structure of a building such as a unit or a house, it doesnt necesarily mean it will depreciate in price too.
You can buy 10 acres of land in Whitehead NSW for maybe $20,000. That is alot of land….heaps! Yet it stil costs a fraction of a price of maybe a 1 bedroom Sydney apartment. Why? Because there is no demand for land in that area. To give you an example, according to Australian Property Monitors, Avalon which is on Sydney's northern beaches; the median price for units went up by 90+% in just 6 months. Everyone wants a peice of it. That's why prices have skyrocketed.
Don't get sucked in to this whole "Land appreciates, house depreciates" theory. It's an ancient theory that has long lost its credibility. If you understand the Law of Supply & Demand then you will go much further than those who solely rely on this old belief.
But you are right on target regarding Sydney's studio units
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