I was just wondering if anyone can point out pros and cons for houses and apartments?
I really like the idea of buying to renovate to increase the capital of a property, to then further invest in more properties. But I have not had anything to do with renovating a unit. Do you tend to get problems with body corporate etc?
Basically I want to know is it better or same same to purchase a house to renovate or apartment/unit?
My reason for asking this is the potential to purchase numerous apartments/units instead of only one house for the same price.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Generally speaking, you can do more with a house (in my opinion) than a unit.
With a house, there's more scope for structural change. You can add an extra room, extend, build a granny flat, render, landscape, etc.
You can still make huge improvements to units – just make the work that any work requiring body corp approval is actually approved.
Having said that, I wouldn't restrict yourself to either type – I'd just go where the numbers look good and what fits with your strategy.
JamieTheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271
I would go houses over units any day of the week (mind you I actually hold 2 units in my personal portfolio). Not only can you renovate more extensively with a house but you can develop it and this is where the potential for capital growth increases.
Developing may not be a strategy for you today but it may certainly be one down the track when you are a more active and aggressive investor.
Basically what I want to do is go where I can build some capital quite quickly so that I am able to invest further.
I think houses will be the way as you said with having more options in what can be done to achieve capital.
Thanks for the input guysScott No MatesParticipant@scott-no-matesJoin Date: 2005Post Count: 3,856
As the entry point for units is much lower than houses, you may benefit from stamp duty exemptions, lower holding costs etc. So a buy, renovate & sell approach or buy & hold can both work.