Hi guys,
Been reading through this forum and slowly learning.
Looking at a property now that seems to be positively geared.However, its a studio. I'm not too familiar with studios, can someone with some experience let me know their opinion on investing in studios? Pros and Cons … is it hard to get a loan?
Thanks in advance.
biggest problem is obtaining finance.
banks normally wont allow for anything less than 50m2More cons than pros in my opinion, however they do tend to be cheap and can be situated in good areas close to water.
Finance and resale are difficult. What look like great returns can be eaten up by undisclosed outgoings, particularly in holiday let scenarios. If there is an extraordinary amount for sale in the same block, there will be a reason for that, so check on online and with local agents. They probably should be furnished, even for long term rentals as in my experience (and believe me there are plenty on the Gold Coast) your tenants will be "betweeners", between jobs, residences, towns and luck. Take out landlord insurance because they can quite literally disappear into the night.
I don't list them, but if it stacks up and the finance is obtainable, then they are still worth a look.
Also dont buy it just because it's all you can afford, may be better off to wait until you can buy higher.
Results1 wrote:More cons than pros in my opinion, however they do tend to be cheap and can be situated in good areas close to water.Finance and resale are difficult. What look like great returns can be eaten up by undisclosed outgoings, particularly in holiday let scenarios. If there is an extraordinary amount for sale in the same block, there will be a reason for that, so check on online and with local agents. They probably should be furnished, even for long term rentals as in my experience (and believe me there are plenty on the Gold Coast) your tenants will be "betweeners", between jobs, residences, towns and luck. Take out landlord insurance because they can quite literally disappear into the night.
I don't list them, but if it stacks up and the finance is obtainable, then they are still worth a look.
Also dont buy it just because it's all you can afford, may be better off to wait until you can buy higher.
Hi,
Appreciate your help. I have found in the same block (part of serviced apartments) there are other 1 bedders available for a bit more. Returns looks like +ve cash flow.
But you mentioned to be weary if there are alot of them on sale from the same block. This is the case, they have a few on sale and a few already sold. What should I be particuliarly cautious of ??
It is situated close to a busy road, which is the main downside i can see.
Thanks in advance
I purchased a studio about 4 years ago in Cairns. It's not in a great location but it's not too far from anywhere either….it is a complex of mixed units and studios. At the time I was worried about finance but in the end I was offered finance by one of the majors and a credit union – with no conditions.
The studio has been rented continually with no hassles at all. Based on my one experience I have still looked at studios to purchase but have just not found the right one.
Good luck….
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