Hi Guys,
long time reader.. first time poster.
Ive been reading many different posts and ideas.. but im still confused. My situation is.. i have a 50k deposit… and i can get a loan upto 310. So roughly 360k to spend in Sydney. I want to invest in something now that the market is decent.
I cant exactly afford a house in a decent area (close to the city).. so i thought buying a unit in the CBD (george st or king st).. a 1 bedroom… for about 300 mark.. and renting it out.. can get upto 400 a week. Strata may be high but you could still get a net income of $15k-20k a year.. and eventually get to a stage where it pays itself off.
Ive considered getting a house in the outer west areas..but as it is still struggling in some areas.. i cant see future growth.
Ive considered a few more but i still cannot make a decision.. in my situation.. what is the best thing to buy?
Thanks in advance.
I wouldn't buy an apartment and I wouldn't buy one bedroom – I think that's a niche market. I wonder if you may have problems with the max LVR that you can borrow (ie may only be able to borrow 60 or 70%), but I'm sure the many mortgage brokers on the forum can clarify that.
I'd buy a house instead, and I'd focus on a large regional town or an outer suburb of a city with good performance prospects. I don't know Sydney well so can't really speak to this market. I'd be more inclined to go for somewhere in/near Brisbane or Melbourne, eg Geelong, Frankston, Redcliffe Peninsula (ie around Redcliffe, QLD), to name a few.
Best wishes, Tracey in Brisbane
Hi TQman, I recommend you “device” a plan based on what do you want to achieve and then your plan will tell you if the CBD investment is better than the house on the suburbs, etc. Property investing is just a vehicle to get you where you want to go.
Apartments are “cheaper” to hold, however offer little or no possibilities of adding value and grow at a lower rate than houses.
Happy Investing
Hi TQman,
As of now that you still dont know what to do with your cash, I suggest that you could put it in Term Deposit.which could acquire up 7.7% p.a. Better than savings deposit.
You could search this in google: Macquarie Term Deposit
Regards
JONCHU wrote:Hi TQman, I recommend you “device” a plan based on what do you want to achieve and then your plan will tell you if the CBD investment is better than the house on the suburbs, etc. Property investing is just a vehicle to get you where you want to go.
Apartments are “cheaper” to hold, however offer little or no possibilities of adding value and grow at a lower rate than houses.
Happy Investing
I disagree here mate… Sure you cannot extend an extra room onto an appartment, but there is still a hell of a lot that you can do to add value – if you get the right apartment. paint job, flooring, new kitchens, bathrooms, etc………
Thing are changing – the right appartment in a city fringe area will out perform a house and land in the suburbs in alot of cities.
The demoraphics are changing – people are moving back into the city fringe areas driving prices up..land = growth is all fair and good, but not when the only land you can afford is way out in the sticks.
I like the low set, boutique apartments in good areas…Apartments are also a great way to start for a lot of people – its been very good to me.
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