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Thanks G.
I live in Melbourne and so I suppose I have been limiting my initial investigations to Melbourne and surrounds, as I am comforted by the ability to 'see' the property and attend if I have to. However, given the prices in Melbourne for properties that are not serviced apartments I am tempted to have a look at other areas.
I shall need to investigate places like Cairns and just get my head around the distance.
Many thanks…
Thanks Globaltraveller,
I appreciate what you say about the finance. I went to my lender the other day (RESI) and told them about my initial thinking. They said that they do not normally finance either serviced apartments or student accommodation. When I asked why (based on the fact that they will allow for a rental return that covers slightly more than the mortgage and with a 20% deposit that the lender ought to feel secure) they could not provide an answer???
They have said that they will investigate affiliated lenders (such as St George) and let me know. I am surprised and now cautious.
Thanks again.
Thanks JacM.
I will investigate the tenant protection insurance to gain a greater understanding and consider my options.
I must say that I have previously heard of your argument that 'it is the land which appreciates' and therefore an apartment, which occupies far less actual land, or just air space, is less likely to appreciate. However, from my novice observation, this would tend to go against recent observations, which show that apartments are in great demand, and that demand drives the resultant prices.
4 eggs ample…. The apartment that I own and occupy (purchased last year) has appreciated by 20% in nine months.
The other side of my thinking is that an apartment requires far less in terms of maintenance and is quicker to rent.
I may be wrong, and that's why I am here on this blog.
Thanks..
