Hi, this is my first post,
I'm interested to find the forums views on whether a UNIT / APARTMENT is a viable first investment property.
I was only talking with a friend today who was steering me away from the idea. Mainly due to lack of land associated with a unit/apartment. How would you weigh up the pro and cons of a small 1 bed unit in Toowoomba for example.
I'd appreciate your views.
Happywifehappylife.
It is very much horses for courses scenario: low entry costs compared to a house, budgeted annual costs for maintenance (strata levies/sinking fund/insurance etc), no mowing/grounds to worry about, easy care.
Units appeal to a different demographic, especially outside of the capital cities. You'll need to understand who wants to live in a unit in the area, whether housing costs are driving people into units, supply/demand for one bedders, competition, capital growth projections/expectations, town planning (for further units/land releases), wider issues such as if/when a dam may be built etc. Factors such as proximity to shops are more important than location near schools (one bedders wouldn't have kids to worry about).
I have sold quite literally hundreds of units and townhouses, purely because i specialise in the under $300,000 market and that – in S.E.QLD anyway – is pretty much all you can buy in that range. I can tell you that the majority of my clients have made excellent capital gains as well as now seeing fantastic returns, due to the philosophy of holding on to their acquisitions.
One bedrooms are not really my favourite but I know of people who have done moderately well out of them. If it's a good buy then you will always do well. I would imagine with the size of Toowoomba, finding tenants shouldn't be a problem.
Anyway the main reason i have posted in this one is that last night i actually downloaded some growth charts for one of my clients who owns a duplex in Glenvale and while the last year saw a dip, this year seems to be back on track. If you would like i would be happy to send you some information on the area – and i have to be honest, i really know nothing of the Toowoomba area (sales wise at least) so i can't make comments on it, but the charts would give you an idea of trends.
Just let me know if you want them.
Thanks for the posts.
I 'm really at the early stages of sourcing / location / type of property / lender etc, but you've got to start somewhere.
Tony, I'll happily take you up on the offer of those figures, if it isn't too much trouble. Can you possibly e mail to the following address:
[email protected]Thanks again.
happywifehappylife.No problem Troy, get them out to you today.
Hi Troy,
sent you an email, just checking you got it and not in your spam folder.
Results1 wrote:No problem Troy, get them out to you today.Hi Tony,
My wife and I are about to enter the market as well and would love a copy.
Is it possible for you to send me your charts as well?Email: [email protected]
Regards
Frank
Have sent you an email Frank.
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