From: Ian Findlay
Hi all,
Debate time!
There is conflicting advice out there whether its "better" to buy houses with land or to buy units.
Stated advantages and disadvantages are:
Advantages of house/land over units.
1. Land appreciates more i.e. capital growth
2. Limited land unlike units which can get taller and taller.
3. Much more potential for renovation/ redevelopment or subdividing.
4. Land retains core value i.e. no matter what happens to the condition of the house the land has higher core value than a run down unit would have.
5. People only buy units because they can't afford house/land so poorer tenants etc.
Disadvantages of house/land over units
1. House & land generally more expensive to buy than units
2. House/land generally needs more upkeep.
3. Generally less rental return on house per $ spent.
4. People want easy living i.e. no grass to mow etc so prefer units.
5. People can generally live closer to cities with units.
Any more advantages or disadvantages?
What do folks think?
Ian
Hi all,
Debate time!
There is conflicting advice out there whether its "better" to buy houses with land or to buy units.
Stated advantages and disadvantages are:
Advantages of house/land over units.
1. Land appreciates more i.e. capital growth
2. Limited land unlike units which can get taller and taller.
3. Much more potential for renovation/ redevelopment or subdividing.
4. Land retains core value i.e. no matter what happens to the condition of the house the land has higher core value than a run down unit would have.
5. People only buy units because they can't afford house/land so poorer tenants etc.
Disadvantages of house/land over units
1. House & land generally more expensive to buy than units
2. House/land generally needs more upkeep.
3. Generally less rental return on house per $ spent.
4. People want easy living i.e. no grass to mow etc so prefer units.
5. People can generally live closer to cities with units.
Any more advantages or disadvantages?
What do folks think?
Ian
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