Have noticed a few unit blocks for sale simple cheap places that rent for 245 a week.
Can get a 4 unit complex for $700k. By my calculations. Would be geared at about 300 a week after interest and capital payed. I know there would be other costs involved. ($925 a week rent for all)
My question is am I better off buying 2 stand alone places. At around the $300k mark. With maybe $700 a week rent.
What suburb / town are you looking at?
One thing to keep in mind is that if the units are all on 1 title, you may have to use commercial finance.
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
4 on 1 title definitely does limit your lender options. There are still residential lending options – but you need to get specific advice from a broker to ensure you’re not committing to a transaction that you can’t complete.
As per units vs houses – I think it comes down to your long term plan. If you have your investment strategy formulated already, you can then apply the principles to decide which is the better fit for you. If you haven’t formed a strategy already, have a read of this article I wrote which may help understand how to get one together: http://www.precisionfunding.com.au/planning-your-investment-strategy/
Always compare a single unit value vs the unit block value – as its becoming increasingly common now to pay MORE for an investment block than the units individual worth, which is hardly logical in most cases.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hi there
I think if you can find a multi unit block at the right price it may well prove to be a good long term investment.
I sold last year a block of 18 units on 1 Title here in Brisbane and have another of my 6 x 2 blocks under contract at the moment.
I have owned these for some 15 years and have proved an excellent buy for me. Still holding onto 2 blocks for the time being.
There are certainly economies of scale depending on where the block is located but make sure you consider expenses such as Land Tax which may not be applicable of you were merely buying a single unit or two.
Certainly structure is important and would definitely recommend getting good legal advice upfront.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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