2 units, same block...
- Thread starter Stark100
- Start date
I try to buy in the same block when the opportunity comes up.
There may be some cons, but I haven't experienced too many. Off the top of my head, they might include the suburb being slow in the CG department, in which case, you haven't hedged buy buying in different areas. Also, if there's a major works levy imposed, you get get hit for both units.
If you know the group and the BC and like it, then go for it. If the suburb is a good one for CG, then you can do well with 2 properties there.
Over time, you might get the entire group. That's an attractive proposition and my objective for a couple that I'm involved in.
You're in a better position than most to know if block is a good one to invest in.
One last thing, check with your current lender to ensure they don't have issues in being exposed to 50% of the block. Many have limits that would necessitate you using a different lender for the second one.
There may be some cons, but I haven't experienced too many. Off the top of my head, they might include the suburb being slow in the CG department, in which case, you haven't hedged buy buying in different areas. Also, if there's a major works levy imposed, you get get hit for both units.
If you know the group and the BC and like it, then go for it. If the suburb is a good one for CG, then you can do well with 2 properties there.
Over time, you might get the entire group. That's an attractive proposition and my objective for a couple that I'm involved in.
You're in a better position than most to know if block is a good one to invest in.
One last thing, check with your current lender to ensure they don't have issues in being exposed to 50% of the block. Many have limits that would necessitate you using a different lender for the second one.
Well its a block of 4, and if you buy this you'll own two.
Given you'll have 50% vote, you can decline any special levy brought up if you decide its not in your favour.
Alternatively if you want something done, its also easier for you to vote in.
Buy all 4 and you'll never have to pay strata again.
Given you'll have 50% vote, you can decline any special levy brought up if you decide its not in your favour.
Alternatively if you want something done, its also easier for you to vote in.
Buy all 4 and you'll never have to pay strata again.
Thanks for the advice - I know and like the block, although I'm not sure of my chances of ever buying the other 2 units as they both have long term OO's in place (been there 10+ years) although you never know what may happen in the future.
I bought my current unit in the same block in January '09 - asking price for this 2nd unit is approx 15% more than I paid... that's the market though I guess!
I bought my current unit in the same block in January '09 - asking price for this 2nd unit is approx 15% more than I paid... that's the market though I guess!
One small issue is that some lenders may not like u holding 50 % of the units especially if there is LMI involved
ta
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of the units especially if there is LMI involvedta
rolf
