I was just wondering if anyone can point out pros and cons for houses and apartments?
I really like the idea of buying to renovate to increase the capital of a property, to then further invest in more properties. But I have not had anything to do with renovating a unit. Do you tend to get problems with body corporate etc?
Basically I want to know is it better or same same to purchase a house to renovate or apartment/unit?
My reason for asking this is the potential to purchase numerous apartments/units instead of only one house for the same price.
Generally speaking, you can do more with a house (in my opinion) than a unit.
With a house, there's more scope for structural change. You can add an extra room, extend, build a granny flat, render, landscape, etc.
You can still make huge improvements to units – just make the work that any work requiring body corp approval is actually approved.
Having said that, I wouldn't restrict yourself to either type – I'd just go where the numbers look good and what fits with your strategy.
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]
I would go houses over units any day of the week (mind you I actually hold 2 units in my personal portfolio). Not only can you renovate more extensively with a house but you can develop it and this is where the potential for capital growth increases.
Developing may not be a strategy for you today but it may certainly be one down the track when you are a more active and aggressive investor.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Basically what I want to do is go where I can build some capital quite quickly so that I am able to invest further.
I think houses will be the way as you said with having more options in what can be done to achieve capital.
Thanks for the input guys
As the entry point for units is much lower than houses, you may benefit from stamp duty exemptions, lower holding costs etc. So a buy, renovate & sell approach or buy & hold can both work.
what about a buy, renovate (to gain capital) and hold approach?
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