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Hi,
I am new to the investing game, I have been offered a Studio apartment in Cairns, rent would cover my loan.
Are studio apartments hard to resell? Do most pople stay away from studio apartments and stick with 1+ bedroom units?If rent covers your loan, then I believe its could be a good deal. Its worth playing with some figures to see if the rent would still cover your loan if interest rates rose significanlty in the future. I would also look at any work / maintenance that you may have to do to the apartment over the next year or two which could possibly reduce any profit.
In regards to resale, get around and ask some real estate agents in the area how much they may be able to sell an apartment like the one you are looking at. Also ask them if apartments like this come up for sale often and how long they generally take to sell. Â As I am from Victoria I dont have a good knowledge of property prices in your area, but just look around at similar type properties in the same location and you will begin to get a better idea of what is happening with prices, resale etc.Â
Hope this is of some use. Â
Thanks for the advice aaron
What has me worried is all the horror stories you here about on the news about buying fully furnished Studio apartments, its only 36sqm and I have heard that some banks dont lend money for those investments, I mean the equity on my home can cover the investment but the fact that the bank wont lend money on it has me worried.Â
