I am looking for a small apartment in hawthorn / camberwell area .
i know that units could not increase as much as house but i could only afford a small place at the moment .
this is my first place and i want to stay in it for 1~ 3 years at least.
I saw a few units 1 BR 1 Bath for $205 ~ $290 dep on quality
my opinion is without a carspace is bad.
so looking for a 1 Br 1Bath 1 car space.
am i right ? i think 2 br is better but 2 br less than 300 is hard to find good ones ?
which gives better Capital gain / etc
thanks
I cannot advise you on the Hawthorn area.
Car Spaces are always a bonus. Eespecially if you plan to keep the unit later try to find undercover parking. Remember for most tenants their car is their biggest asset.
I coubt that 2BR will appreciate faster than 1BR.
Several things taht I would concentrate on:
– Look for an overall high quality property rather than the unit itself. (Worst House in best street principle).
– Once you own the unit push for improvements to the whole property at every opportunity. For every $ that you spent several $$’s get spent by the strata group helping to raise the value of your unit.
-Try to make your unit as unique as possible (install broadband, nice outside blinds, etc). Use your imagination without commiting too much money. Talk to people what sells places. The aim is to attract top dollars when you sell or rent.Good Luck
Hi yeohkt,
I suggest you look for a 2BR unit. I believe they offer better capital gain and rental yield because they cater to a bigger market (both buyers and tenants).
Have you considered “rent to buy” for yourself. You can rent a 2BR unit with the intention to buy in 6-12 months time. That will give you enough time to save a bigger deposit for the extra price of a 2BR unit.
Also, in areas like Hawthorn/Camberwell, I will not buy a unit without carspace/s. These are inner city suburbs and street parking is an issue. You will find the resale price is affected if there are no parking spaces.
Hope this helps.
Sanjiv“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hawthorn is a good area for long term growth, but I would doubt if you will ever get a decent rent return – very neg geared.
Are you after cashflow or growth?
If you are a growth investor, read up on Michael Yardney and Monique Wakelin. They favour cap growth properties, and will tell you what to look for in areas such as Camberwell, Hawthorn, Glen Iris etc – the ‘leafy suburbs’.
I would also be researching the demand on 1 or 2 bed units in that area.
1 bedders may be hard to rent, thus there may be a lot on the market right now.
One final note on space – you always end up needing more space thank you think you need.
Ring up a few agents in the area and ask if they have any 1 bedders for rent. In this tight rental market, they shouldn’t have many, and if they have it could be a bad sign.
Also, 1 bedders would be attractive to students – are there any Uni’s close by?
The cap growth is dependent on a number of factors, not the least of which is demand. There is usually more demand for 2 bedders over 1 bedders, thus they tend to appreciate more, but there is always an exception to the rule somewhere.Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
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