Experienced Investors is One property in Neutral Bay or two in Lakemba

[Craiginqatar]

In the opinion of experienced investors, would it be better to buy 2 apartments in Lakemba returning 580 per week for both or for the same money buy one X 2 br apartment in Neutral Bay returning 490 per week with views of the water. I get more rent if I buy 2 properties, but should I be considering other factors?

Longer term or given current market factors is Neutral Bay better?

Your opinions are welcome.

 

[Propertunity]

If you'd asked the same Q 15 years ago, then the answer would have been that it was better to have purchased in Neutral Bay - see CG for last 15 years comparing the two.

Now all you have to do is to decide if that will be the same again into the future from here

 

[Television]

Lakemba is close to the city... but not as close as Neutral Bay.

Lakemba may be closer to Parramatta, but it's never going to have the same views.

I think Neutral bay is always going to be desireable whereas Lakemba is a bit more speculative (as far as CG go).

I think if you can afford to wear the expenses, which I know is an odd situation as you can't get negative gearing in Qatar, I'd probably take Neutral Bay...

(From a very inexperienced investor, just putting my opinion out there)

 

[chilliblue]

Personally I would spread my risk and buy two in seperate suburbs and space the timings between leases so that if one tenant leaves and you have a vacancy for any period then one still has money coming in.

 

[marg4000]

Scarcity has a great impact on prices.

I would imagine water view properties in Neutral Bay are far fewer than apartments in Lakemba, and for that reason I would go for Neutral Bay. Lower rent will be offset by lower rates, expenses and upkeep on one property rather than on two.

My opinion only...
Marg

 

[TEG]

Easy.

2 x units in Lakemba. Buy 2br units in old building (30 - 40 yr old), do small reno $10K - $15K, rent out. Nice Yield, and nice CG.

Don´t be fooled by thinking just because Neutral Bay is a more nicer place to live, that it´s a better investment. It´s not.

 

[TEG]

...ok, doing a reno from QATAR might be a bit difficult

however, i still think 2 x lakemba units win hands down, anyday.

 

[BuildingBlocks]

I would take two cheaper units somewhere offering a higher rental yield but still with the prospect of capital growth in order to minimize holding costs.

 

[cadence]

Assuming the total price of the 2 Lakemba properties are the same price as the 1 property in Neutral Bay, I'd take Neutral Bay.

Properties with water views are limited and given Neutral Bay's location, CG should be significantly greater.

With Neutral Bay, you'll only be paying one set of strata and water/council rates, so the yield is not going to be that far apart.