Hi all,
My partner and I are searching for a property which is to be an investment property for next 2 years and then converted to our home after that.
Currently, we are having difficulties over choosing between a townhouse and a house.
The townhouse is located in a suburb which is much closer to the city where we both work. It is very short walk from the station but has strata levies and less than 200sqm2 of land.
The house has 600 – 1000 sqm2 of land and is about $100k dearer and is located non-walkable distance from a station. The station is 20 minutes further away from where the townhouse is located and obviously much further away from the city.
Can some of the experienced investors please help us make our decision by presenting some arguments?
Cheers in advance
Andrew
there is a mantra that people adopt “land goes up in value and buildings go down”. Is a bit simplisitic though as building costs are continuing to escalate strongly upwards (dragging old buildings’ value up with it), plus it depends on what land you are comparing. The 200sqm of townhouse land may be much more valuable than the 1000sqm of unmanagable undevelopable chunk of suburbia. I would suggest looking at what your lifestyle requirements are and consider your future requirements. The changing demographic is seeing increased demand for medium density housing and I wouldn’t be afraid to go for the townhouse – I would just pick whatever suits you best. Chances are it will be what suits the rest of the market best as well, in which case you will be on a winner!
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Andrew,
Why not buy the townhouse to live in now and the house to rent it out. By doing so you have 2 options after 2 years time.
By living in the townhouse now it will be closer to where both of you work for now.
Circumstance might change, you might want to have kids in the future and would like to live in the house with bigger land and backyard. Then you can move into the house and rent the townhouse out.
If you don’t want kid then just continue to live in the townhouse where as the house is appreciate in value.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]
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