Buying units

[ini22]

Hi everyone,
I am planning to buy my first investment property.
I have 2 important questions which I hope someone can help me with!!

1) I am looking at the Carrum Downs and Skye area near Frankston, Victoria. Does anyone have good news about this area?

2) I am planning to play it safe and buy a 3-bedroom unit in hopefully a complex of not more than 20 units. Any issues here?

Thanks heaps.

 

[twobobsworth]

2) I am planning to play it safe and buy a 3-bedroom unit

Why do you think this is playing it safe?

 

[sailor]

My preference for units, would be a smaller block. Too many owners at the body corporate meetings...too little control for me. Otherwise...I quite like units.

 

[alexlee]

2) I am planning to play it safe and buy a 3-bedroom unit in hopefully a complex of not more than 20 units. Any issues here?

I don't know whether others feel the same, but unless it's an area where there are no houses, I've always wondered why people would buy 3 bed units when they could buy a house instead? I mean, if you need/want 3 rooms, wouldn't you prefer a townhouse?
Alex

 

[TheCamel]

With a unit as well, you have all the assorted Body Corporate rules and regulations, strata fees, whiney live in owners, sinking funds, the inability to do much to add value, and, potentially most importantly, no land value.

(unless of cuorse you buy all the other units in the block)

 

[alexlee]

Though for a first time buyer you might be more comfortable buying a unit. If it's a choice between buying a unit and NOT buying anything, go for the unit. Hopefully this will be the first of many properties and you can always buy houses later on.
Alex

 

[Twitch]

I agree with the others; if you want to "play it safe", get more consistant growth, and have more control then buy a house. Especially for 3 bedrooms.

The yield is slightly less than units but that's about the only disadvantage.

Good luck.

 

[VYBerlinaV8]

I have bought only units so far, primarily because of the higher yield. I figure that as the portfolio grows I will be in a position to buy some houses further down the track. My main issue is that I have no real plans to sell any assets, so higher yield is nice (and I can still get equity growth anyway, even if it's lower than houses).

My units are doing well so far. My only advice is to consider how many bedrooms, with regard to price and potential yield.

 

[tubs]

They're both suburbs a long way away from the CBD. I'd be wary about buying something so far away with so little land content. However, I know both suburbs were rated highly as having good growth prospects.

 

[want2bewealthy]

I wish I had been able to afford a house for my 1 and only [so far] IP.
[bought 3 months ago]

They're way too expensive here though and I simply wasnt allowed to borrow that much, I am happy with my unit, [$254,000] its 13 years old, second story of a 20 lot bunch [spread out, not all in a row, which is quite private and appealing to me if I were to live or purchase, this helped aid my descision.

its also in a very good location thats about 7 minutes drive from the CBD and there is not much land content left around to put it bluntly,

I must admit that Im a little worried about capital growth over the years as there is no land attatched to my unit, I own a piece of "sky" you could say.

BUT, With so many people these days not working as much as people used to [slackers] Im not really that concearned because my guess is, in 10 years, about the time when I might consider selling, someone just like me 10 years ago is going to come along and its all he's going to be able to afford, be it an investment or a PPOR purchase.

Im feeling the strain of negative cashflow for now and will be for the next few years but am hoping this investment will be a good one, I want more though ofcourse and have been bitten by the PI bug, I cant wait to get another ;]