One More Expensive or Two Cheaper?

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knyazs
Participant
@knyazs
Join Date: 2019
Post Count: 1
May 27, 2019 - 5:56 am
I am planning to buy my first investment property in my birth country in Europe, and I am considering two options:
1. One apartment in the capital city’s centre (2m population)
2. Two apartments in the second largest city’s centre (400k people)
The first apartment is off the plan with completion in one year, the price per sqm 3000 and potential rent of 700 per month, while the second one is already built, 1400 per sqm and likely rent of 250 per month.
Based on your previous experiences, should I go with one expensive or two cheaper apartments? Also, do you recommend buying a new investment property or “worn out” one?
Many thanks,
Mike
- This topic was modified 4 years, 11 months ago by knyazs.
- This topic was modified 4 years, 11 months ago by knyazs.
mikejamesbird
Participant
@mikejamesbird
Join Date: 2019
Post Count: 1
June 4, 2019 - 11:33 am
Hey Mike – I’m a Mike also! One of the key things to watch out for is the developer’s background if you indeed go ahead with off-the-plan.
Which country are you looking at? One of the key things will be the population growth, here’s some data that might help http://worldpopulationreview.com/continents/europe-population/.
The other thing to consider might be an off the plan apartment in Australia, with the market in the middle of the downturn there is a tonne of developers feeling the pinch. Unlike REA/Domain who only show projects that developers pay to advertise, https://www.urban.com.au/ has every project in the country listed and can be a treasure trove of potential distressed stock. Hope this helps :)