HOUSE vs UNIT returns

[not so lucky]

Hi folks
I am getting close to purchasing my first IP in Bris with the help of a buyers agent . I did own a unit previously but that was a failure as an IP.

I have read heaps and researched for about 12 months. My criteria is pretty standard, 10Ks to the city, 3 bed house, average house in an average suburb, garage, etc etc. I am pretty happy with that criteria but have had doubts recently that I could get better returns from units.

I don't like units as IPs because of body corps and fees, but looking at recent fugures it appears that units are getting much better returns on rental that houses. Does anyone have experience / opinions on this issue? Do you think I am still on the right track with this selection criteria?

Really appreciate any advice here.

good luck

 

[Merovingian]

In general, houses tend to provide better capital growth in the long term due to the higher land content, as it is the land that appreciates.

I guess it really depends upon whether you're a cash-flow investor or a capital growth investor.

Personally, I feel the same as you regarding units, or strata titled property in general. I would prefer houses as investments, but then again, if something good crops up, and the numbers make sense, in my opinion it's always worth investigating — apartment or not.

Just my thoughts.

 

[Jacque]

Take a look at this post, and remember to consider the land value content, as discussed.

http://www.somersoft.com/forums/showthread.php?t=17208&highlight=units+houses