Are you referring to the several apartments which are within managed buildings? Like the Quest ones, for example? Or company shares?

During my (short) time reading around, I understand than some investors avoid these… which makes me avoid them… which makes them more difficult to sell.

Discussed this with a REA at the weekend and he said they were difficult to sell also

Hi Tony

Yes that’s my belief also, despite my never having rented property in Australia (I used to rent in the UK). I also have a belief that quality property will attract quality tenants, and that if you enter th market at the very lowest/grotty end, then you can expect likewise from tenants.

So, smaller blocks, near the action but away from ‘unit-land’. Hmm…. also 2 bedrooms better than 1. OK, but I guess that means i’m digging for more cash

The challenge really seems to be finding something that is CF neutral (becoming positive). Working on a current interest rate of 5.84% fixed for the first 3 years, I calculate that I’ll need to find something that has a Gross Yield of 8.4%…. difficult in Perth. Typical is around 4-5.

Time to get looking…

Interesting post, and some good advice Tony.

So, assuming 1 bedroom apartments are the safer bet (I am currently thinking of the same), what other purchase criteria would you be looking for?

– bigger blocks of units versus smaller blocks?
– off the plan versus 1960’s?

There are a few places in Perth (for eg) where most of the 1bd units are grouped along a single road (its ‘unit-land’)… is this a good thing or a bad thing for investment? Conversely, will it be difficult to rent a unit that is in a largely residential area of homes which are owner-occupied?

Cheers, Sam