Hello fellow forum members,
I am thinking about a property investment in Brisbane and there is lots of talk about the apartment market not being a good investment due to oversupply. I am wondering though are townhouses (with private use backyards/courtyards and garage entry into home)considered/valued in the same way apartments are – or are they a bit different? I understand its not the same as having the value of independent land that a home gives, but am wondering if they might be a better target than an apartment if house on land is outside the current budget?
In general there is less supply issues due to the nature that you can’t put 100 of them in a 1000sqm plot of land, but they still can have supply issues if the development rules are relaxed in allowing large amounts to be built in a suburb which can cause poor value increases.
The supply equation favours: Houses (in established areas)> townhouses > apartments – houses being the most favourable.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
thanks corey
When considering apartments/townhouses/villas look for a plot ratio of 70/30 meaning there is a land to building ratio greater than 30% as its land that will appreciate in value over time and the building will depreciate over time.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Thanks Colin that is really interesting – so you mean for example, land in meters squared/number of townhouses? Whats the formula for working that out? I am keen to use this approach.
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