Hi all,
My partner and I are looking at buying an investment property in Melbourne. We have found a unit that has been on the market for less than two weeks. We have a budget of 450K and are trying to buy a property within 7 or so kms from the CBD. The unit is a two storey townhouse, upstairs has two bedrooms, master bedroom has built in wardrobe and balcony, bathroom with small bath. Downstairs has living area to the front with open plan kitchen dining area to the rear. Separate laundry and also has a courtyard. House is in pretty good condition, may need a bit of work done in the future, nothing too major.
It is within walking distance to train station, shops and cafes and also has a uni close by. The location is perfect. The house currently has a long term tenant and rent is decent.
The only thing that’s stopping us from putting in an offer is that the property is 1 of 12 in a group. We’ve never liked the thought of living in a unit, but some people do prefer it, but is 12 too much?
What are your thoughts? Does the location matter more than the amount of units? What land content is appropriate?
We’re really unsure at the moment and would appreciate other peoples opinions to help make up our mind, before we miss the chance and allow a good investment to pass by.
Any advice would be greatly appreciated.
Thanks, m & f.
Hi F,
Just a couple of thoughts that come to mind….Does the location matter more than the amount of units? What land content is appropriate?
Probably demand is the big factor – you can have a great location, but if the block is unpopular (for whatever reason), it will likely remain so. Find out as much as you can re demand for these units. e.g. Sales History, how often sold, how long on market, number of renters lining up to rent one when available, etc. Maybe chat with three or four local RE agents, residents, etc. If there is a problem that lowers demand, identify it, then consider if it is something you can FIX.
Re the land size, it will likely have some effect on future growth. Obviously, the more you have, the better. Divide the total area by 12 to get an idea of “your share”. Compare the m2 to similar smaller unit blocks (e.g. if 200m2 is “yours”, as opposed to 230m2/unit in a block of 6, then the effect is not so bad).
Let’s see what other, more experienced, members have to say,
Benny
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