Question, I seem to love looking at blockes of units, am I barking up the wrong tree, are their any reasons why units/appartments, would make a poorer investments. I like the idea of spreading my chances of the rent coming in.[confused2]
Marc Hamilton-Jessop
You are ‘spreading’ your chances of finding a tenant also.. you have more competition the larger the block of units you invest in.
I prefer those in a small group, with a high % of owners.
on the positive, entry costs in most cases are cheaper.
do a ‘search’ on this subject within the forum, it’s been discussed before
my 2c
REDWING“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorALos consider that a block of units will most likely be “Commericial Finance” wheras individual houses or even individual units are “Residential Finance”. As the timeframes for paying off the loans and the interest rates are different, it may change the income you’re expecting.
Regards
Judypersonally, i go for houses. I find the returns are higher.
If your unit are less to 50sqm the loan will be 60% max and some bank are not interrested to finance under 50sqm.
you can mix, have some units now and some houses later.Small blocks of units have always been good for me. I’ve got a couple of blocks at the moment – one in Tasmania performs particulary well. It’s 6 x 1 bedroom units. There is a fairly high turnover of tenants and they tend to be single men, but when I’ve got one vacant I’ve still got income from 5. You need a good property manager.
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