Ive recently come into a bit of money from selling an IP. Im interested in getting back into the market but would prefer the rental income to be closer to covering the bank payments.
Ive been looking at 1-2 bedroom apartments and these seem to be the best thing for this.
Are there any issues with these that I might not be aware of? ie. are they still ok with capital gains etc
thanks
BrendonOriginally posted by brendon11:Ive recently come into a bit of money from selling an IP. Im interested in getting back into the market but would prefer the rental income to be closer to covering the bank payments.
Ive been looking at 1-2 bedroom apartments and these seem to be the best thing for this.
Are there any issues with these that I might not be aware of? ie. are they still ok with capital gains etc
thanks
Brendon1 & 2 bed apartments are usually better on the rent returns than bigger ones or houses, as the purchase price is usually cheaper. Generally, as the purchase price of the property increases, the rent returns drop away.
As for capital growth, the land content is what appreciates – not the building, so it is probably better to buy units which are free standing or semi-detached. Apartments don’t have much land content (if any) so they usually appreciate more slowly.
The other factor is the suburb the units are in. You need to find one that hasn’t experienced our recent boom.
Some suburbs are showing signs of a ‘correction’ at the moment so it may be a good time to look for those.Cheers,
Marc.
[email protected]Ok no real surprises then, thanks for your help
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