hi everyone, I just came across this website today… amazing.
Well, I have one investment property under my belt in a blue chip suburb with large land (worst house in the best street type)…. and Im looking for another property.
With my limited income, my questions were
UNITS
what do people think about units. How is money made with units? I read all sorts of books "rich dad, poor dad" etc that talk about this stuff and positive cashflow… but my impression is that this type of profitability does not exist right now.
Without a positive cashflow unit… is it worthwhile? The land is worthless.. the unit is depreciating in value, and the redevelopment is limited? am I missing somethingHOUSING
Is it a good time to buy in blue chip properties whilst the interest rates keep rising. I know it would be smarter for me to look in underestimated suburbs with potential for further growth but considering the climate… is this too risky a thing to do?Hi
My 20c worth……….for what ever its worth
Units: the fundamental principles are probably true in a general sense and some investors steer clear of units all together. We hold both units and houses and we tend to look at the potential of each opportunity and what our strategy would be for that property. There are units and units…eg. we bought one place labelled a unit but it is a duplex , so only one other unit and no body corporate (went up 25% value and 20% rent over two years in the supposedly slow growth outer suburban area, not spectacular but we are happy)…..in another case we bought a very run down inner city apartment (crappy inside but nice older style block) did a basic reno mostly ourselves and have picked up a 15% gain in 3 months (about 3 times the cost of our reno). If we hold for a lifetime the factors you mention may kick in and maybe we could have done better another way. Frankly we dont agonise over such things as it leads to procrasination…..if we are doing well that is enough.
Houses: Cant really comment on your intentions , both approaches sound OK depending on your area/city , the opportunity and your finances. We have built new places in growth corridors and that has worked out OK, lately after the unit experience we are looking at reno opportunities as I am looking at leaving work and would like some projects to do. Others on this forum beleive a troubled market and declining prices are inevitable and imminent, if that is the case you may be better served holding back waiting for the bargains to appear in your areas of interest . One of those judgements we have to make for ourselves.
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