Dilemma re body corporate V stand alone

[Philby]

Being a newbie, still deciding on our first property and still working out the algebra!
My dilemma is costs - re body corp fees etc against a stand alone property
EG
Townhouse for 95k plus body corp fees of apprx $2300 tenanted at 145 a week long term
House for $116k not tenanted but "probable "(agents quote) 170
Looking at long term first IP
What would be the best choice
and ignorant
Philby

 

[geoffw]

Personal opinion only- not algebra.

Yields seem close. But the townhouse has extra body corp fees.

But that's not the main thing.

The house would have a higher land content (presumably)- so would have the better chance of increasing in value.

But it all depends on what the house is like vs what the townhouse is like. Area, location, presentation etc.

And pose as a tenant to try to find (even from the same agent) rentals for similar properties.

 

[Kevmeister]

Rental-only yields are 7.9% for townhouse and 7.6% for house. But unless you know the outgoings for the house you can't make a fair comparison anyway.

Geoff makes very good points regarding location (therefore cap. growth for each location), condition (keep in mind how much maintenance you may need to do on each), land area and/or land value compared to prop. value, etc.

Also consider potential tenancy rates for each depending on location, proximity to services suitable to your target demographic (eg. houses might house families, therefore school proximity might be favorable) - townhouses might house professional couples therefore proximity to other services may be more important for them.

 

[Philby]

Thanks, I can see clearly now, (I think). Guess I need reassurance from you pros!

Philby

 

[handyandy]

Apart from everything else with a house you have sole control as against a townhouse where you will be limited.

The limitation can effect you if you wanted to improve by putting ona veranda a pergole etc all of which you can achieve quiete easily with a house but in a townhouse you will need to also ask permission of the body corporate.

Having a number of houses and townhouse/units my personal experience is that group housing costs me more than individual housing in every case.

Cheers

 

[Philby]

Thanks handyandy for the reassuring post

philby