Hi
Im contemplating the purchase of a inexpensive 1 bedroom unit. The reason I believe it is inexpensive is due to there being no car space included with the unit. Im thinking of ways to obtain a car space for the unit to increase it’s immediate value(ie. asking current tenants/owners if they are willing to sell me a car space). If you have any ideas they would be greatly appreciated.
Thanks
Buy one with a car space if it is important. Depending where your unit is, a car space may me more expensive than you think and I doubt the property price will be devalued by this amount.
Robert Bou-Hamdan
Mortgage AdviserSee if you can fine a unit near by that has an unused car space/garage.
Rent it out and pass on the cost to your tennant.
You could offer the potential tennant two options for rent. One without the car space (lower rent costs) and one with (higher rent cost).
Let them decide…
Though if it’s for a PPOR then I would look for a place with a car space. If you don’t use it you could always lease it out to someone who needs storage or a spot for a second vehicle…
Learn, Love, Strive. Make a difference!
Check the strata plan as some times a car space can be hidden by trees etc. There are also devices which allow a car to be parked on top of another car, these cost around 20-30K but in inner city areas are a worth while investment. Check on the strata plan who has carparking spaces if there is one that is not used eg an old lady owns it, buy a stack of scratchie tickets and offer them to her for right to the parking space. A cheap bottle of wine may also help.
chears Mike.
Thanks to everyone for your responses.
Cheers
Depending on the area, a car park can add 30-40k to the value of the property (CBD). If your intention is to rent the property and it is close to public transport and a university, then it may be a good buy to pitch to the student market. Be aware though buying a property without car parking limits it marketability. As MIKE JACKSON indicated, check the title details as some strata subdivisions have accessary units that are car parks linked to unit or in recent subdivisions sometime units may be broken into parts.
All the best
Ash
[biggrin]Also check the size. Small units are hard to get finance for, and this can limit resale price.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Just another point, make sure the unit isn’t apart of a stratum development. These are hard to obtain finance for as your interest as owner is only registered on title via a caveat. Banks do not like to lend money for theses properties as they can only register their interest as mortgagee with a caveat, this does not allow them the right to foreclose on the property when payments are in arrears.
Ash
I was of the understanding that stratum title gave freehold ownership of the unit but not the common areas which are held in a company name. Also, foreclosure is an American thing.
Robert Bou-Hamdan
Mortgage Adviser
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