Hi Everyone.
I have recently widened my search for an investment property from the Eastern suburbs out to the Northern suburbs. My dilemma is this:
– The first property I have found is a small house on a small block in Fawkner. It is fully renovated and will fetch approx. $380 – $400 p/wk rent. (Est sale price up to $450k).
Pro – Will need minimal maintenance, will be easily rented, receiving a decent rental return & (13km from CBD)
Con – Go’s against my idea that the value is in the land & no improvements can be made to the property to increase value.– The second property (which my investment partner) is looking at is in Jacana (next to Broadmeadows). This block can fit 3 townhouses. Has a current small house on it which will need some work to be rented. (Est sale price $400k)
Pro – Has the future potential for development
Con – Is in an area which currently does not have a great reputation and no guarantee if it will improve, The house which is on the block need money spent on it to even put a renter in and then will it even get one?Any recommendations from any experienced investors out there?
I understand my investment partners ambition to develop in the future but I am attracted to a low risk investment with a decent rental return in an area easily accessible to the CBD.
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