I am thinking of purchasing a unit as it is more affordable than a house although I am aware that the land value is what counts. However, I am thinking that rather than stretching finances to the limit and buying a house, that a unit might be a bit safer repayment wise.
Has anyone here purchased a unit for their first IP and then been able to move onto bigger and better properties?
Also, has anyone purchase a cheapie IP in a more rural area that provides a better rental return and still managed to go onto better properties?
Or have you had a bad experience with the above?
Hi Boshy
My first property was a unit in mackay for $40 000 that rented for $115 in 2003 since than i've bought more property using that property as equity and now i perfer to buy units than houses but it always comes down to the numbers.
Yes i have bought a cheapie IP in rural area that provides a better rental return and still managed to go onto better properties.
Thanks Rob
MY mate on apprentiship wages at 17 saved a deposit for a$70,000 unit in nowra on the nsw south coast. A few years later he sold it for $135000 and used it for his next one. He is still single on a modest wage and now has two properties worth a total of$550,000 with around $400,000 in equity.So yes it can be done from modest begining's.
Hi,
My first property was a unit at Mermaid Beach, Q. It was in 1997 just before the market took a dive so it took me quite a few years to recover. A house in Q at the same time would have caused the same problem.Units are great. Statistically, in most areas they do not appreciate as much as houses. But they are an almost set and forget investment. Houses can take more work, depending on their age and quality.
If you want to use your first property for bigger and better things, just ensure it is a quality property. Key indicators, look at growth for that type of property, rental yield, vacancy rate, the town it is in, etc, etc.
Regards,
HI
All my investment properties are units – I find that there's less maintenance with them. Having said that I've made money with houses too but don't tend to buy and hold because of the above. My personal rule is that the area is more important than the property itself and my units are all in good areas and I've made great capital gains (and currently good rental returns) on them.
Horses for courses!
Regards
Hi there
our first IP was also a unit – for similar reasons as mentioned above – it was what we could afford in the area we wanted to invest in (Maroochydore, Sunshine Coat) – our most recent purchases have also been units – though there have been some houses in between
thanksThanks for the great replies everyone. It gives me hope that from a small modest beginning big things can grow. We just got preapproval for X amount of $ so we just have to choose the property to buy now – we've missed out on a couple because finance wasn't pre arranged.
Thanks
I just purchased my very first property which was a 2 bdr unit
Got a good price because I settled in 7 days
Ahhh gotta love terms and conditions/haggling
Congratulations scribzy! May it be the first of many.
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