Hi everyone.
Just got a general question, and would love to hear what you guys think and why you have chosen houses or units or both.
I currently have one IP which is a house and I’m about to buy another IP at the end of the year. I was considering buying a unit in a major city i.e. sydney. But i also like the idea of owning the land that a house sits on too. what has worked for you guys for the best returns.
cheersI have 2 houses and 5 units. I prefer houses as I have found strata costs to eat into profits. The only reason I have 5 units is because 4 of them were in one purchase when I bought he block. I plan to focus on houses from now on. The only time I would buy units again would be if I could buy the whole block again.
Hi Doug
Welcome aboard.
It’s much of a muchness in my books. It all comes down to what the deal looks like and what’s in demand for the demographic within that area. Like the poster above, I’ve got a mix of houses, units and townhouses.
When factoring in the holding costs, remember that you’ll need to include strata or body corp expenses for units (but rates are generally cheaper and strata should cover the building insurance). Most people would probably advise that units require less maintenance than houses – but I guess that comes down to the age of the property.
You can probably add more value to a house – and also come up with ways to add a second income stream (grany flats, ect).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
what about villas and townhouses? are strata or body corp fees needed to be paid for them too?
HI Matt,
Usually – very small complexes may have minimal strata costs. This occurs when there is negligible common property. Rule of thumb the more common property and shared facilities there are the higher the strata costs. Big ones to look for are lifts, swimming pools and gyms.
Original poster – all but two of my properties are units/townhouses and villas. As Jamie said much of a muchness and really depends on your personal situation.
I would go with houses unless your buying a block or the unit shows positive after all fees Including the body corp and was close to say brisbane cbd etc
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