Hi, i'm very new to forums so this may not be the correct place to ask these questions....I'm looking at purchasing my first home which I want to eventually be one of a porfolio, however do I buy a house or unit/townhouse? I'm purchasing it on a single income, and wish to purchase to take advantage of the 1st home owners grant and stamp duty waiver. Currently looking at a townhouse in a good area....5yrs old and I believe if rented out in the future would be a good investment. ie. $250000 currently rented at $250. Does anyone have advise that may keep me on a prosperous destination. Narj72
First home/investment - house or townhouse/unit
- Thread starter narj72
- Start date
A basic tenent of property investing is that land appreciates in value and buildings depreciate in value. Based on this then you would only buy houses because townhouses and especially units only have a small land component.
I think a lot of formumites only buy houses.
But then land in the inner city is worth more, so sometimes a townhouse in the inner city will increase in value more than an outer suburb house.
The main problems with townhouses and units is the body corporates. Firstly because of the fees always seem to go up, you often pay the same amount in b/c fees as rates (so on-going fees are often more expensive then a house thus cutting into your yield). Secondly because of the hassles and restrictions involved with a body corporate (there's a thread running now talking about how annoying they can be).
But you can buy a nicer townhouse with $250K than a house.
BTW $250K for $250 doesnt sound that flash - they rent would have to be at least $270 - $275 to make up for b/c fees.
But it all depends and there's no definate answer.
good luck
cheers Sharyn
PS If you are set on a townhouse, check out Onsite Direct, they set the sale price by a bank valuation.
I think a lot of formumites only buy houses.
But then land in the inner city is worth more, so sometimes a townhouse in the inner city will increase in value more than an outer suburb house.
The main problems with townhouses and units is the body corporates. Firstly because of the fees always seem to go up, you often pay the same amount in b/c fees as rates (so on-going fees are often more expensive then a house thus cutting into your yield). Secondly because of the hassles and restrictions involved with a body corporate (there's a thread running now talking about how annoying they can be).
But you can buy a nicer townhouse with $250K than a house.
BTW $250K for $250 doesnt sound that flash - they rent would have to be at least $270 - $275 to make up for b/c fees.
But it all depends and there's no definate answer.
good luck
cheers Sharyn
PS If you are set on a townhouse, check out Onsite Direct, they set the sale price by a bank valuation.
Welcome, all you need to know is here, spend 10 hours surfing old threads and you will be an expert ASAP.
Peter 147
PS House to appreciate and dont foget townhouses have body corporate fees and special levies can happen
Peter 147
PS House to appreciate and dont foget townhouses have body corporate fees and special levies can happen
narj72 said:
Hi Narj,
Welcome to the forum. Peter gives you very good advice, spend days and days perusing the forum, the search function is excellent and will be a very useful addition to your future investment toolbox. Just remember, you've already made the first step by trying to learn more in this forum, so read lots and if you don't find the answers to your questions after reading through past threads, don't be afraid to ask, the only stupid question is the one you don't ask
JIM
