Hi All,
I am new to this forum and would like to ask for some advice. I'm looking to purchase my first property, an apartment to first live in for a period of time before I rent it out and use it as an investment property.
The location I am looking within the Sydney CBD area and I have come across some fairly reasonable serviced apartments in the Waldorf complex.
I have read posts about serviced apartments not being a good investment choice. Would anyone be able to shed some light on this? and whether this may be an option for me to look into?
In addition would a 1 bedroom or a 2 bedroom be a better choice in regards to capital gains?
Thank you all for your time.
You need to look at what the strata fees will be each year as this might bite into your income stream.
The other worry could be that there is an over supply of serviced apartments in the CBD making it hard to sell in the future.
Lenders can refuse to lend due to the lender lending too much already to this building this is known as over exposure by the lender.
Lenders may refuse to lend to you on the reason of an apartment being too small in floor space.
More bedrooms means more rental income and a higher price at sale but may not equate to a higher capital gain.I do not own an apartment but these ideas/ opinions come from what I have read in books and magazines.
Hi Sam,
I would concur with the duckster's view. I prefer investing in small boutique blocks in terms of apartments or townhouses. Personally, serviced apartments are not an investment choice
The article below will probably answer most of your questions and save me some time helping you!
http://www.hotspotting.com.au/index.php?act=viewArticle&productId=11
Tread carefully on your first investment property and try to tap into people who are knowledgable and on your side. You are doing the right thing by getting educated before jumping in.
Kind regards
Mark Taylor
Thank you for your feedback. It is much appreciated by someone new to the market as myself.
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