Hi All,
Keen to find out peoples opinions on one bedroom units? I.e. Pro's and Con's, Success stories and horror stories. I have heard urban myths about the capital growth not being as strong but not sure how this eventuated or if this is even true?
Basically I usually target 2 bedroom units however have found a great little one bedder about 63sqm in the area I am looking for which has a decent enough proven rental return (5.8% inner ring Sydney suburb) with the added advantage of only being 7 years old so still a fair amount of depreciation to be claimed as well. In comparison to all the other two bedders I have seen in this area it wins hands down.
Anyway considering submitting my offer over this weekend so if anyone has any advice on this topic I would be really grateful.
Mr M
Sounds like a decent enough size for a 1 bed. Personally have always liked 1 beds as an investment option, so long as in urbanized areas where the demand is strong and often like you have found the yields can be better and help you get to the CF+ sooner. Just make sure you do your research on the demographics of the area you are purchasing in.
Good luck
I was always warned about buying a 1 bedder, but as a 20 year old desperate to get into the property market I had 2 options…
a) Buy a 2 or 3 bedroom property about 30 – 40mins from the CBD in a very average suburb OR
b) buy a 1 bedroom property withing 5km of the CBD in a booming suburbI chose to ignore what people were saying and purchased the 1 bedder…. lived in it for 6 months to claim my FHOG and did some minor renovations…. decided to try my luck at securing another eager first home buyer to purchase it at an inflated price and invest my money in something bigger…. The result = 4 offers in 6 days, all from first home buyers, and a $60,000 profit!
1 bedders in a top location will continue to do well because there will always be young property investors who want to break into the market but can't afford something with the 2nd bedroom…..
63sqm is a great size too – and if it's only 7 years old….. GO FOR IT!
Good luck!
I agree with Steve i love the true 1 bedder as they are so practical to occupy and make a great return as far as yield is concerned.
I own a block of 14 units here in Brissie with 10 of them 1 bedders and I wouldnt have had a days vacancy since the day i bought them.
At 63 Sq M that is a good size so go for it.
Richard Taylor | Australia's leading private lender
One of the major risks with 1 Bedders is if they are under 50 Sq M. My parents owned one of these and it was difficult to sell as the buyers couldn’t get finance from traditional lenders. But at 63 Sq M’s you shouldn’t have a problem with this.
As everyone said, as long as there is demand for them then prices will go up. I had friends who paid over $400,000 for a one bedroom unit when houses in the area were $600-$650k. But there was the demand for a 1 Bedder with a big living area and a great view.
@ Richard – It is interesting to know that you are an investor as well as a finance broker. A block of 14 units sounds like a nice thing to own. I definately want to invest in blocks of units once I get my experience and capital up.
Ryan McLean | On Property
http://onproperty.com.au
Email MeRyan might want to read a but about my background I do own a few properties. (currently 40 in the stable at present and starting to acquire interstate this year)
Richard Taylor | Australia's leading private lender
Richard where can I read about your background?
Are you currently financially free?
Ryan McLean | On Property
http://onproperty.com.au
Email Me
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