1 bedder vs 2 Bedder
- Thread starter b7277
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It really depends on the suburb you're buying in. Inner metro areas 1 & 2 beds are equally as good with 1 beds usually getting a higher yield because of the lower entry cost.
buying a 1 bed in an outer area where there isn't a single professional or childless couple demographic will mean longer vacancy periods and less growth.
It's important to understand the area you're buying in and then buying the most suitable asset type thereafter.
2 bedrooms have previously been the safer bet as they appeal to a wider purchasing market and often offer more flexibility in tenancy arrangements.
With that said though I own some very strong performing 1 bedders that have been an absolute treasure in my portfolio. They're all within 6km of a metro CBD.
buying a 1 bed in an outer area where there isn't a single professional or childless couple demographic will mean longer vacancy periods and less growth.
It's important to understand the area you're buying in and then buying the most suitable asset type thereafter.
2 bedrooms have previously been the safer bet as they appeal to a wider purchasing market and often offer more flexibility in tenancy arrangements.
With that said though I own some very strong performing 1 bedders that have been an absolute treasure in my portfolio. They're all within 6km of a metro CBD.
Indeed.... but that "flexibility" can also lead to those "the idiot in the other room left and I can't afford the rent" issues.....
The Y-man
Interesting article on this topic:
http://www.afrsmartinvestor.com.au/..._apartments_are_better_mj2t8Rxp0XfnYmJDHIqHsJ
http://www.afrsmartinvestor.com.au/..._apartments_are_better_mj2t8Rxp0XfnYmJDHIqHsJ
I agree with the prior posts, the Resi standard Location Location Location
If you find a less than perfect property in an great place, it makes money. The ideal property in the wrong place, is hard to tenant.
We do flexible lease terms around semesters in the college town, and are never vacant, there are always another bunch starting 4 days after the end of the prior semester
We are fortunate and get returns on these >10, convenience of all the inclusions lets the rent be above the cost of the inclusions
If you find a less than perfect property in an great place, it makes money. The ideal property in the wrong place, is hard to tenant.
We do flexible lease terms around semesters in the college town, and are never vacant, there are always another bunch starting 4 days after the end of the prior semester
We are fortunate and get returns on these >10, convenience of all the inclusions lets the rent be above the cost of the inclusions
actual >20
but when I write >20
I get flamed
dont believe it
but when I write >20
I get flamed
dont believe it
Indeed.... but that "flexibility" can also lead to those "the idiot in the other room left and I can't afford the rent" issues.....
The Y-man
My friend was in that situation. He was desperately hunting around for a new roommate.
As i've misread from an IP perspective,my original reply is a personal preference.
So,as for 1 bedders,imo closer the cbd the better but that said middle/out rings are performing and they maybe due to cheaper rent,close to amenities,infrastructure,lifestyle etc.
It's a mixed bag and you have your pockets on the outer that will perform near to the speed of proximity of cbd and that's mainly due to the tech age we live in.
Ppl embrace it and those that loath the tech breach.
Cheers Spades.
So,as for 1 bedders,imo closer the cbd the better but that said middle/out rings are performing and they maybe due to cheaper rent,close to amenities,infrastructure,lifestyle etc.
It's a mixed bag and you have your pockets on the outer that will perform near to the speed of proximity of cbd and that's mainly due to the tech age we live in.
Ppl embrace it and those that loath the tech breach.
Cheers Spades.
