now ive been doing some reading and talking to people, ive heard mixed opinions over the APARTMENTS vs HOUSES debate…and furthermore to the NEW VS EXISTING housing debate
what are people's opinions on here. i'm aware it depends on what the goal is but what are peoples genereal feelings of future trends
from my readings ive learnt that inner city apartments/units are a growing trend, not only providing good rental returns but decent capital growth…..has any1 experienced similar results??
any opinions on this matter would be appreciated
cheers
hey,
its a pretty broad question which is affected by a lot of variables…. e.g specific local area? a unit in inner city brisbane is going to perform differently to a unit in coffs harbour etc. etc.
Historically i have found that higher returns(rent) come from units, but bear in mind costs associated with units…. body corporate etc.
Houses, generally speaking, offer greater capital gain as the land value is included moreso with a house than it is with a unit. unless you have a unit in an 8-unit block in central cbd location which would be ripe for development.what i have encountered: units = higher rent, less investment flexibility.
houses = greater capital gain, maximum investment flexibility, lower rent return.hope this helps
Mick
Im a big fan of inner-city big 1 bedroom (nothing under 50sqm) apartments in Sydney, because of :
-the cheaper entry price into blue chip suburbs
-great rental yields/ good long term growth
-better quality tennants (in my experience)
– the number of single person households is increasing, Ive never had any problems trying to rent them out..
a few rules I live by when looking to buy them,
Buy into the small blocks,
no pools/gyms/concierge (these usual equal high body corp fees)
I never buy ground floor apartments (tennants will pay more rent to be off the ground floor as they feel safer)….
all the best…
hmmm im going to be investing in melbourne, people at work seem to be keen on moving into the city or buying there so there is backing behind the trends ive been reading about. thanks for ur responses. my plan is to get a house as my first property as i feel itl help build a portfolio due to capital gains etc. is that a valid opinion?
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