DaveMorroMember@davemorroJoin Date: 2004Post Count: 15
I’m about to purchase my first IP.
I had a theory about staying away from semi detached but here in Adelaide i have found quite a few with very good rental returns.
I realise they may appreciate in value slower than a stand alone home but i’m just curious what anyone else thinks ?
I plan on building a reasonably large portfolio in time but this is my first and tax bebefits are one of my primary concerns at the moment due to my income of approx $60,000 p.a.
Any thought would be appreciated
davethefirstbruceMember@thefirstbruceJoin Date: 2003Post Count: 133
sounds good to me.
if the yield is a lot better than a house, I’d seriously consider it. Sometimes you find the general investor drives house prices up to an unreasonable differential with townhouses, because they shy away from the latter.
Mooloolaba, Qldwealth4life.comMember@wealth4life.comJoin Date: 2003Post Count: 1,258
I don’t agree that they will appreciate slower, it depends on the demand just take Balmain in Sydney as an example. I focus on the investment side more than the property itself, what I mean by that is debt to equity, cashflow, yield, independant qualified information etc, wealth in my mind is caculated by equity which equals cash which equals more purchasing power.
I focus on debt reduction and there for my cashflow increases which pays my debt out quicker, cheers and good luck.geoMember@geoJoin Date: 2003Post Count: 1,194
personally i look at +CF – not worried too much about going up in capital – if it does that’s a bonus
“If You never never ask, you’ll never never know”jancrowsMember@jancrowsJoin Date: 2003Post Count: 122
Steve suggests investing where you can maintain control over the the entire property. He would buy the entire unit complex rather than one unit. Both duplexes rather than just the one.
There is some merit in that concept. However one has to have the financial capacity to do so and many do not to start off with.
There is a duplex with Id suggest 400 m2 of land to title in my street listed. Rents at $160 pw asking price $125,000. Same street with a standard unit in a medium complex you pay $10,000 more with a small courtyard. Get similar rent.
To buy a home on a standard block of 800m2 you pay a minimum of $210,000 . Rent $220 pw.
I would start of buying the duplex.
I would suggest you do same.
“Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emersonkay henryMember@kay-henryJoin Date: 2003Post Count: 2,737
A semi-detached house is a free-standing house, to my knowledge. The house is just joined to another, but it’s torrens title, I think. Certainly, in sydney, that’s the case.
I think they have different names for them in different states.
Hence, there would be not much difference in appreciation value- except that you have smaller land mass.
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