Land to Asset Ration for Units

Hi All,

Already getting frustrated trying to get a house in Western Sydney for under $500K so looking at units with high a high land to asset ratio closer into the CBD.

Being new to this I just wanted to know if any investors out there had a rule of thumb as to what constitutes a good land to asset value for units?

My understanding is that the it is the dwelling itself that provides the rental return, but the land that appreciates, so would like to get as high as possible.

is 25:100 acceptable? The buyers agent I spoke to today recently bought one with a 66:100 ratio although this was in an expensive part of the east and way above my budget.

Is unit land really even that important, if theres nothing you can do with it other than the status quo?

Any thoughts really appreciated.

Max
 
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