After getting pre-approval its time now to hunt for my very first IP. max budget is 330K, in Melbourne.
been through many small houses, town houses, and units (in northern suburbs) to find one within budget.
one thing i'm very confused is it better to buy a small house or TH/Unit? if i'm gonna hold it for next 5-7 years.
btw small house means land around 400 sqm, and bulding around 17sq.
they all are pretty much same 3 bed, and single garage. rental returns around 330-360 pw.
would much appreciate your advise for a first IP buyer.
Hi Orica,
There may be more spending with a townhouse as you will have Body Corporate fees, so find out what they are (quarterly) and make sure they are in on the budget you have set up. A townhouse/unit has rates, maintenance and Body Corporate Levies whilst a house only has Rates and Maintenance (virtually). So just make sure that you take that into consideration and there's really no difference in between the both.
Maybe ask arounda few local agents to find out what goes quicker… In my area, there are less townhouses on the rental list as people love them up here (low maintenance gardens etc). So have a look around, ask around, how long is the standard sort of house you are looking at buying staying on the rental list for? Compare this to units… What has the lower vacancy period? The less the vacancy period, obviously the better
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