Hi all,
when buying an investment unit is it better to purchase a unit in a small complex or in a larger complex?
i realise it just doesn't depend on just that one factor but if you assume all other factors are the same is there any real difference between the 2.
With regard to other factors are some problems more prevalent in one and not the other eg are body corporate issues are worse with small complexes?
thanks
Hi rapapa
One challenge for all unit complexes is the effect the "fire sale" of one unit has on the valuation of all the units in the complex, i.e. you get one mortgagee auction where a unit gets sold cheaply and that effects the valuations of all comparable units in the complex.
Numerically, you have less exposure to this type of risk in a smaller complex.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
I'd rather consider the quality of the investment as opposed to the size of the block that it sits in. A block of 10 with a difficult body corporate or cash-strapped owners or lots of rentals etc may be a dog of an investment or a gem, likewise a cbd highrise may have similar issues.
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