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- BennyModerator@bennyJoin Date: 2002Post Count: 1,416What makes a better property investment?
This thread is for discussion of this poll. Please submit your vote and your thoughts on why!
BennyTaylorChangParticipant@scha9799Join Date: 2009Post Count: 234
This is a very interesting poll.
I often found some people paying too much for the old and tired property in comparison with existing recently renovated property.
Sometimes, people over estimated their ability to renovate but under estimate the existing renovated property value.#Planning PermitParticipant@planningJoin Date: 2014Post Count: 64
An old tired but in a great location and with potential to add value like a dual occ would be my choice. Reno the old tired home and sell to finance and develop in the rear yard.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Old, tired all the way. You can manufacture equity – either by yourself or paying tradies to do the work. Off the plan comes at a premium – and are flooding a lot of capital city markets.Thuy NguyenParticipant@tnguyenJoin Date: 2015Post Count: 1
Well I think it depends on the price. In a hot market the price tends to be not much different between a nice property and a rotten one. So why not buy a nice one with a similar price. Whether or not to buy in a hot market is another matter :).KatarinaHParticipant@toddy2015Join Date: 2015Post Count: 10
I think it is more the matter of what kind of investment you are after. If it is value adding it would be the old tired one; for instant return and rental income the renovated one. But if you set up the retirement portfolio, have the funds you might as well buy off plan and go for brand new. And it also depends what kind of investor personality you are. Risk vs safe rental return for example.
And of course don’t forget the location. An old tired one in a premium location would always beat the off-plan one in an established area. Especially if it comes with a bit of land to play with.BennyModerator@bennyJoin Date: 2002Post Count: 1,416
Though I voted for the “old, tired, rehab property”, I totally understand that different people with different needs, risks, ages, etc will have a different vote. Katarina commented well on that – i.e. “What kind of investment are you after?” etc.
And then TaylorChang made a sage comment with this :- “I often found some people paying too much for the old and tired property in comparison with existing recently renovated property.”
Certainly our emotions can lead us to make choices we wouldn’t have made in a calmer state of mind !!! One to watch? One to consider when a marketer is pushing you sign to buy THEIR OTP property NOW !!
I too am finding the results and the comments interesting !! :)
Benny#Planning PermitParticipant@planningJoin Date: 2014Post Count: 64PaulParticipant@polonyJoin Date: 2015Post Count: 2
DEPENDS ON THE INVESTOR.
I voted for “An existing, but recently renovated property”. In 2015 enough people have seen renovation shows that the extra cost of buying a renovated property can be less than the cost of buying an unrenovated property then improving it, particular once you consider the risk of breaking something.
For me, I can do any analysis in Excel, but I have the aesthetic skills of an accountant and my practical “skills” may devalue a property. I’d rather let somebody else take these risks.Tracey SeghabiParticipant@traseg01Join Date: 2015Post Count: 1
Old & Tired !! So much more design potential and so much more fun !Ameen Al QudsiParticipant@nwmeaJoin Date: 2015Post Count: 4Ameen Al QudsiParticipant@nwmeaJoin Date: 2015Post Count: 4
Well, i voted for the ist option and came out to be the least opinionated but it works well in my country, more national and international end users and investors are more seems interested in such chosen option because of the better return.Corey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010MTRParticipant@marisaJoin Date: 2004Post Count: 663
I wish you had a property with development potential, as you don’t voted no. 3jmnes12Participant@jmnes12Join Date: 2015Post Count: 20
Established property with potential for manufacturing capital growth through strata titling, sub-dividing and renovating is your best bet. Take it from someone who bought 4 brand new properties in 3 years and wish they hadn’t!YllenkParticipant@jamesknellJoin Date: 2016Post Count: 2
It seems that majority of people are of the opinion that an old tired property in need of a renovation is the best investment – however a minority are looking to buy renovated properties. So why buy a property, renovate it and then sell it, if no investors are looking for renovated properties? Based off this poll, it would appear that you would be smarter to hold onto the old tired property and do nothing to improve it and hence making it appealing for investors.KingParticipant@jaydenwalterJoin Date: 2016Post Count: 17
It seems that majority of people are of the opinion that an old tired property in need of a renovation is the best investment – however a minority are looking to buy renovated properties. So why buy a property, renovate it and then sell it, if no investors are looking for renovated properties? Based off this poll, it would appear that you would be smarter to hold onto the old tired property and do nothing to improve it and hence making it appealing for investors.
That’s true, but why would you need to sell to other property investors? I don’t know the statistics but I would expect the number of people buying a property that have no intention of further investment would far outweigh the property investors of the world.