Never invest in 1 b/r units

Hi 007,

I have heard that as well. I think it is because a 1 bedder would only appeal to a limited section of the market ie single ppl or couples with no kids. This would apply when you are looking for tennants or down the track when you look to sell. Thinking about it.. if I was in either of those situations, if I could afford it I would prefer 2 bed ie junk room/study/ proverbial “‘doghouse”‘.

Having said that I have a one bedder in a 12 storey building with lift, pool and gym. What that means is higher maintenance ie strata levy’s and a possible nasty one off levy for major unexpected works, if the sinking fund isn’t able to cope.

However I would have thought the lifts and other facilities would add to the buildings appeal to tennants and also a potential buyer when you look to sell.

Like you I’m looking inner (east and beaches) sydney and all I could stretch to is 1 bed. I’m watching the market in those areas and still think prices will fall a bit more, but over the long term I think capital gain will be good

All my opinion of course.

regards,

Paul

my sister owns a 1 bed that is across the piazza from a 2 bed that she owns as well. the 1 bed has beaten the 2 bed hands down. the rent difference has proven to be minimal with the occupancy levels of the 1 bed much higher, plus the 1 bed cost a lot less in the first place.

INVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT

I have no idea what the value of the place was, but the wife and I when we were students rented a nice 1 bedroom apartment on the top floor of a 3 storey block in Waratah Ave Randwick. We paid $ 170 p.w. the first yr and $ 175 p.w. the second year. That was back in ’92 and ’93.

We paid our rent on time and kept the place looking nice, never even saw or heard from the agent or the Landlord once in 2 years.

I can vividly remember standing at the counter just around the corner on Belmore Ave at the REA’s office applying for the unit, some 3 minutes after viewing the unit. A man came bursting through the door with a great wad of cash in his sweaty paws claiming that he instantly wanted to take that 1 bed unit around the corner. The girl filling in the application form looked up at me and said “are you sure you want it ?”. I had to slap the full cash amount of the bond and 2 weeks in advance down on the table to make him back off. He was not a happy camper. I wasn’t happy either as I was just about to start the heavy negotiating spiel to try and get the rent down….absolutely no chance of that !!!!

Roll the clock forward two years, when we were packing up to leave after our last exams, the agent called to say she would need access for 1 hour on a Sat. morning from 9 to 10am. A nice couple came up first, walked in through the front door, saw how we had the unit laid out – looked at each other and instantly headed off down the stairs and around the corner to the REA office. The second couple, about 90 seconds later, having passed each other down at the bottom of the stairs, were a mother and son. They had exactly the same reaction. The Mum turned to the son and yelled “Quick – run”.

The wife and I took great pleasure standing on the balcony, eventually joined by a sullen looking mother, watching history repeat itself – the son took off down the stairs frantically sprinting after the first couple. He missed out by about 20 strides or 3 seconds. The mother was not happy.

We were nowhere near into buying property at that stage (23 and virtually penniless after buying the engagement ring), but have never been able to replicate the demand generated by that little 1 bedroom unit.

I can only surmise the Owner is still happy with it.