dodgy property in nice area

My brother and I are looking at buying an investment property together. He is determined to buy on Sydney's Lower North Shore. The problem is that we can only afford to look at the very bottom end of the market here, and the places tend to have some less desireable characteristics. I am worried that we will not be able to get/keep tenants, and not be able to sell it easily, if we need to. Is it better to invest in a nicer unit in a less expensive area, or is location more important?

I realise there is no definitive answer, but I'm interested in people's opinions, so thanks for any replies.

My mother always said Location, location location... oh and the other one is, buy the worst house, in the best street.

Just remember that 'the worst house' in the best street... it may cost you money in long term i.e. renovation etc in order to keep the property.

Look for facilities, proximity to transport/shops etc. On the LNS you could consider some undervalued areas such as Meadowbank, West Ryde, Ryde, North Ryde, Macquarie Park - these suburbs have a wide variety of apartments for all budget, close to trains (and future train/metro), good shopping facilities (Macquarie Centre, Top Ryde under construction), close to University (soon to have private teaching hospital) and TAFE.

hello there Jane

i understand your thoughts on the lower north shore unit market. i am assuming that you are looking at areas such as lane cove, artarmon, chatswood.

these areas have had some considerable growth over the past year. lane cove moved about 15% in 2007 is what i have been lead to believe. you cannot get anything decent in lane cove now for under $400,000, but if you are looking at the $450,000 mark there are some nice properties out there although i do not know how much you are willing to spend.

anyway good luck with the hunt.

hi Jane

You might like to read Jan Lomas' books, I understand that she focuses on IPs in lower socio-economic areas, and done well out of it too!

Good luck
Lisa

LNS = Lower North Shore

For those playing along at home (in other states).

Surburbs of  the Lower North Shore of Sydney actually are;

Balmoral  Beauty Point  Blues Point  Clifton Gardens  Cremorne  Cremorne Junction  Cremorne Point  Georges Heights  Hmas Platypus  Hmas Waterhen  Kirribilli  Lavender Bay  McMahons Point  Milsons Point  Mosman  Mosmans Bay  Neutral Bay  Neutral Bay Junction  North Sydney   Spit Junction  The Spit  Waverton 

Might be helpful?

When it comes to the LNS there simply is no substitute for the location.  Having lived in most and operated a business in these suburbs that is.

Ryde and Macquire park o my.

Opportunity in Everything

Sorry I meant to say Margaret Lomas, not Jan!