Or from recent threads a cup of coffee, or some Nando's in Perth
Investing in Townhouses?
- Thread starter youngm
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Or from recent threads a cup of coffee, or some Nando's in Perth
I think if you can create your equity starting with and working you way up;
1. doing reno's on apartments
2. reno's and subdivisions on old houses bigger blocks
3. Do your own Duplex /triplex / Quad developments
4. Get into commercial
This is all buy & hold and each to their own , but I dont feel comfortable waiting for the initial value to go up without anything I can control myself. Unless you are very experienced and can pick the right suburbs each time of course.
1. doing reno's on apartments
2. reno's and subdivisions on old houses bigger blocks
3. Do your own Duplex /triplex / Quad developments
4. Get into commercial
This is all buy & hold and each to their own , but I dont feel comfortable waiting for the initial value to go up without anything I can control myself. Unless you are very experienced and can pick the right suburbs each time of course.
Few years ago, I would never advise to buy into a unit/apartment for investment.
However, things are changed in Sydney. And there are so many advantages in buying unit/apartment/townhouse as investment:
1. My Toongabbie agent sent out a message last week saying that "the rental inquiry for a unit/apartment is more than for a house". The yield is higher.
2. Less land tax
3. Capital grow is still not worse than a house now in Sydney (this might not be true in other states).
4. Much cheaper than a house.
5. More and more people in Sydney own a unit/apartment/townhouse as a home.
However, things are changed in Sydney. And there are so many advantages in buying unit/apartment/townhouse as investment:
1. My Toongabbie agent sent out a message last week saying that "the rental inquiry for a unit/apartment is more than for a house". The yield is higher.
2. Less land tax
3. Capital grow is still not worse than a house now in Sydney (this might not be true in other states).
4. Much cheaper than a house.
5. More and more people in Sydney own a unit/apartment/townhouse as a home.
I would prefer not to do apartments but for getting your foot in the door they are very good, my reasons;
1. Cheaper than a house
2. Still rise in value as houses in the area (they must or they would be dead cheap)
3. Strata fees, regular maintenance to the building that you probably wouldn't do your self.
4. Dont dismiss the land zoning of an apartment complex rather than just looking at the m2, but try and get as big a ratio as you can.
5. I paid 100k for one in 2002, now worth around 430k and getting 410pw so I'm biased
The only annoying thing I find, if someone has an issue in the complex then it becomes everyone's, I try not to get involved !
Don't forget the quarterly strata levy doubling and tripling over that 10 year period too.
Don't forget the quarterly strata levy doubling and tripling over that 10 year period too.
Not mine
Don't forget the quarterly strata levy doubling and tripling over that 10 year period too.
Yeah it does, but if you stay away from pools, gyms etc.. you will be ok, I think mine are around $1200 per year now. Would you even spend this on maintenance on your own house or leave it until such time as you are hit with a big bill is also what you need to consider.
I live on the 3rd floor of an apartment block and absolutely love it. No neighbours above and I feel very safe. If I were older, then probably the first floor.
Also, take into account aspect. North and East are the best.
Pro is that it's brand new and perhaps more attractive to tenants, but the con is that after 1-2 year, it's like every other townhouse in the area. Off the plan areas tend to have oversupply, which means you're competing with other owners for tenants.
Other cons are that you might overpay for the property and the bank gives you a lower valuation, too. Not so nice. There could also be delays in building and your money is stuck with the developer (loads of threads like that on SS). As I discovered recently, it might also be a process registering the plans, ensuring appropriate connection of gas, electricity, etc.
As you can tell, Im not really a fan of off the plan anything. Best to stick with established or newly built townhouses. Im just starting out like you and like townhouses for the reasons already listed.
I generally avoid ground and top floor.
Top floor can be too hot in summer.
Ground floor can be too damp in wet weather & have potential security issues. Elevated or ones built on top of a carpark would be a better option. If there is a courtyard, that can also offset some of the negatives.
rixter! your posts and strategy are very inspiring .... never really thought about townhouses/villas that way ... totally makes sense and nice to see you have reaped the rewards of your well executed plan ....... delicious food for thought
Thanks candence. It sure beats a '40/40 club' membership.
What is a 40/40 membership?
I like townhouses, villas and apartments.
Townhouses and villas are generally smaller complexes so have reasonable strata/BC fees vs apartment complexes unless you can find the small ones.
I find that all walks of life need villas/townhouses whether they be young, old, families, students etc. You are popular with all the market.
The majority the population settle for a 40/40 club membership.
People who work 40 hours per week for 40 years of their life, only to retire with their house paid off hopefully, and a small amount of superannuation that is not going to last anywhere near their life expectancy, only to fall back and become dependent and just exist upon the welfare system if its still around by then.
