Hi,
I’m a single mum and currently renting. I don’t own any properties. I want to get into the market and buy a unit in the Liverpool area so I have my own home so I can retire in 20 to 30 years time. I was initially looking at purchasing a new apartment around $550 000 however I’m still working on saving for the deposit. Still need about a year for a deposit for this amount. I have an option now of purchasing an older apartment and renovating the unit. This might help with building equity faster and purchasing another older unit. Is it better to wait and keep saving for a new apartment or purchase an old apartment now and potentially buying another older apartment later? Is it better to invest in one new unit or 1-2 old units? Any advice/comments would be appreciated. Thanks in advance!Hi Sarah,
… and welcome to this good place. Just so you know, I removed the second thread you started – so we don’t get people replying in two different threads, all saying the same thing. By keeping it all together, I think you will find it easier to keep track – and so will we.Re the question, I would be looking closer at “buying old and buying well” rather than buying new. With you renovating an older unit over time, you will add value to it. The other option is to PAY for the value that the developers’ add to the new unit instead. That could be $200k more in some areas.
One other thought is that I prefer house and land – that way your owning of the place is autonomous – you don’t “share” the ownership with several other unit owners. Is a house and land in your thoughts at all?
Let’s see what others have to say too,
Benny
Hi Benny,
Thanks for your reply. Purchasing a house is out of my budget unless it’s a really run down property. It will also take longer to save for the deposit.Thanks
SarahSarah I agree with Benny in relationship to houses but before I even read your answer I thought it might be a larger step than currently possible.
So, I personally think if your willing to add value to an older property can get a good price on something you can easily afford this can largely set you up to move forward.
I am not a fan of units but if you can buy with less units (e.g. 8 instead of 150) than you own 1/8th of the land, so in some cases you can buy units for less than the land value (happens more than people think)
Both options have their own benefits but if one is possible now and you are willing to put the work in and its means a smaller loan it makes a lot more practical sense from my eyes. (providing it fits your long term financial goals.
Kind regards
Jaxon Avery
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
Hi Jaxon,
To be honest, I just want to get a foot into the market. I don’t want to wait too much longer. My goal is eventually to have as many properties as I can relying on growth and having them long term. Then in 20 years time to sell a couple and buy a home I can afford that I can’t afford now. Extra income would be fantastic once they’re paid off so I can retire early.Then you have answered your own question? just make sure you do some reading prior to settlement (due diligence)
-Check BC
-Rates
-Pest test
-Building Inspection
-Area sales prices
-Ways to add value
-etc etc etc (aka read a lot)
-have someone to assistKind regards
Jaxon Avery
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
I think I have answered my own question. I wasn’t sure which option would have more growth, however after recommendations from others on property chat, many suggested older units would have more potential to build equity through renovations plus there’s more potential the value would increase as opposed to a new unit where you’ve bought it at a high price. Do you have any recommendations with who I can talk to or articles to gain more knowledge in the area?
I did send you a personal message on here with my details, happy to have a chat and instead of recommending someone, assist and teach how to find what your looking for.
Kind regards
Jaxon Avery
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
You must be logged in to reply to this topic. If you don't have an account, you can register here.
