Hi,
We saw an IP which is on the highside of the road, relatively large block, nice layout but need some TLC, in Central Coast. We found, however, most of the houses on the street are Housing Commission (HC) houses.
Almost all the HC houses around there are neat and well maintained. But still we are concerned the value of the property for investment. Especially on the capital growth and salability after, say 5 to 8 years.
The agent said HC houses are gradually sold to private but very slow.
Could we get some advice on IP among HC houses?
Hi SUN553
We've owned an IP in Toormina (near Coffs Harbour) for 3 years, that's in an area that has quite a few Housing Commission places. I believe it was all Housing Commission once but, over the years the've gradually been sold off to private owners. This transition to private owners definitely seems to have a beneficial effect. We sold it with Vendor Finance and the lady that bought it reckoned it was a good area to live in. We only got this information recently, as she's moved on and mentioned the info when we were picking up the keys from her.
If you can get access to RP Data, you can look at a plan of the area and see who owns what. We then go an talk to neighbours who are private owners. We find they're more than keen to tell you what the area's like. Good luck.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi
my houses have all been ex-housing commission, I have had them positively geared almost from day one. As far as future sales go, I don't know how they may appreciate for sale as I don't plan to sell, it is only an issue for me regarding having increased equity to borrow against in the future.
cheers
Sonya
Hi Paul, Sonya,
Thank you for your reply. It seems IP among HC houses would give us a good cashflow. Thank you again for your feedback.
The area we saw was quite good; reasonably close to the beach, shops and schools. We are still concerned sale price in the future as we are not planning to keep it forever.
I'd appreciate if somebody has any idea how HC houses would affect capital appreciation conpared with non-HC housing area.
Thanks.
We have our PPOR opposite a HC house, also the suburb has plenty of them sprinkled around. Never noticed a problem, likely this depends on the general area as well (We are 10k from Brisbane CBD). Our HC neighbours are very quiet as have been all the ones I'm aware of, probably something to do with waiting 7 years or so to get a house in their desired area!
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