I am looking at buying blocks of units in regional australia for positive geared income and capital growth. I am looking at 2 blocks – one of 6 units strata titled, and one of 5 units all on one title. The strata title units are price at $100,000 more expensive and return around $1,000p.a. less despite both blocks renting for roughly same amount.- my question is – which ones would like experience greater capital growth (assuming I don’t split them up and sell off any of the strata titled units). Is it worth paying more for ST units, and paying increased amount for council rates (double) and thus getting less returns, when my intention is not to sell. Will the strata titled units be worth considerably more on a valuation to reborrow against or will the units on one title hold up just as well?
Solo
It has been a path i have on for around a decade and still own around 6 non start titled blocks of units in Brisbane.
In essense we buy inline and then strata, refurbish and onsell 1 block at a time.
If you can buy the block inline then you will certainly save on Rates and Land Tax and if your intension is to hold and obtain higher yields and Capital Growth then why wouldnt you.
Financing blocks over 4 units is normally classified as a Commercial application and may mean that you have to put in a higher deposit although in saying that we have done blocks of 8 as residential lending..Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
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http://www.yourstatefinance.com
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Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
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