All Topics / General Property / Land or location

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  • Profile photo of Joey76Joey76
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    @joey76
    Join Date: 2010
    Post Count: 2
    March 4, 2010 - 8:13 am

    Hi

    I am looking at buying another investment property and am torn between two properties. They are both the same price with the same rental return. One is a 2BR executive townhouse within walking distance to beach and city centre. The other is a large 3BR home on a large suburban block 5km from the beach. Both have recently been renovated. Any ideas on which would be the smarter investment over the next 5 years?

    Thanks
    Jo

    Profile photo of Tom SiegelTom Siegel
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    @tom-siegel
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    March 5, 2010 - 8:33 pm

    So the net rent is the same? Are you adjusting for market vacancy in the two different areas?

    Properrty near the water generally has more potential to hold its value in a bubble burst or even continue to appreciate.

    I don't know the market so I can't say for certain – just generally speaking.
     
    Food for thought. I hope it helps.

    Tom Siegel
    Commercial Appraiser

    Profile photo of thecrestthecrest
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    @thecrest
    Join Date: 2004
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    March 8, 2010 - 1:20 pm

    Good question.
    Other factors affect the price over 5 years, like
    proximity to infrastructure like freeway, hospital, shops, school,
    local employment
    land size
    supply & demand of housing in that area
    Not easy to compare these 2 , because there are pluses and minuses,
    the house has one more brm, more land and probably on ground level, while
    the townhouse probably has less land, maybe 2 levels, but proximity to beach & city.
    My money's on the house due to bigger land and more bedrooms.
    cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
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    Profile photo of urbanedgeurbanedge
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    @urbanedge
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    March 8, 2010 - 8:37 pm

    I would suggest you take the one which is a walking distance to beach and to city center.. it would be a nice choice. It would be easy for you to access the city and if you want to unwind, beach is a few distance away.. so? ;)

    Profile photo of Ryan McLeanRyan McLean
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    March 9, 2010 - 2:38 pm

    I would go with the house.

    Rental returns may be the same, but with a town house you have added costs like the costs for taking care of the common areas.

    Also the house is better because it is LAND that goes up in value NOT houses. With the house you own more land than with the town house.

    The house will probably be more CF+ than the townhouse

    Ryan McLean
    http://CashFlowInvestor.com.au
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    Profile photo of Joey76Joey76
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    @joey76
    Join Date: 2010
    Post Count: 2
    March 9, 2010 - 4:27 pm

    Thanks guys, we have decided to go with the house for the land reasons.

    Profile photo of urbanedgeurbanedge
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    @urbanedge
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    Post Count: 34
    March 12, 2010 - 5:33 pm

    good for you Joey76..

    good luck on your new living.. will you conduct a house blessing?

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