hello everyone i was wondering if you have any experience or advice of investing in units instead of houses.I've always wanted to invest in property and for some reason i only ever thought of houses, I live in sydney i was looking at buying a house in st marys a decent one costs about $350000 and likely rent is $3-350 a week depending on the house.Then a couple days ago i noticed some decent 2 bedroom apartments in liverpool some as cheap as $140000 to $200000 with a likely rent of $160 to $200 a week rent.For someone just starting out like me the much cheaper unit looks a better option plus(i think) closing fees and maintenance are much cheaper for a unit,but do they appreciate in value like houses and are they harder to sell.thanx for reading would love to hear from ya
Hi Grease Monkey ,
The most common thought with realestate investing is that land goes up in value and buildings go down . The amount of land that you "own" with a unit is quiet small . Having said all of that units can be reasonable investments . There are hidden costs like body corporate fees that jump to mind . Other costs can be building maintenance and a sinking fund . Sometimes if you take all these costs into your calculations the returns are not so attractive .
One thing I would certainly look for would be off street parking, preferably a lock up garage . This will make it easier to rent and help to make it more attractive for resale .
You could do an RP Data search that would show the growth over the last few years .
Hope this helps
Rodeo .
The main consideration for units should be very similar to housing…….land value………scarcity value…..income………the best units are generally in very small complexes
http://therainmaker.net.au
Small Stock InvestingThe correct answer to this question is not as simple as it would seem. All of the variables need to be considered.
If you were comparing new houses 30k from the CBD to new units in the same area, I would place my money on the houses.
However if you were comparing New units within 10K CBD to old houses in the same area, then I would place my money in units.The adage that land appreciates and buildings depreciate is simply an urban myth. Show me a house that was built in 1900 that can be replaced for the same amount today is it was originally built for. Buildings can be depreciated for tax purposes, but they do not depreciate. On the other hand, i can show many examples of land that has depreciated in value due to the house that is built on it that is charachter listed and can no longer be removed.
Jon
thankyou everyone for your answers you are right theres no deffinant answer i think il have to bite the bullet and rather buy a house or a unit and see what happens thanks.
The biggest thing that you need to consider is, what is your long term goal? If you want a long term appreciation of you money, go with the house. If you want cash flow, the multi-unit property is possibly the better way to go. Just remember, if you have a house and it is vacant, you have a 100% vacancy rate. If you have 4 units and one is vacant, then you only have a 25% vacancy rate. Like Jon Chown said, there isn't an easy answer. Good luck.
jcdykes
http://www.akvalleywebuyhomes.comThe Residex Best Rents Report predicts strong growth for Liverpool units and higher than average current rental yield. There are no suburbs in the Sydney area with house rental yields and predicted growth sufficient to make it into the report.
Daedalus
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