Middle ring house vs Inner ring apt

[wpggtom]

Hi all,

Sorry if this has been covered before but I can't find this topic if it has.

I have around $450000 I'd like to spend on an IP and I'm torn between building a new house middle ring Brissy or buying an apt/townhouse inner ring. I don't want to be out of pocket more than around $100 week (after tax benefits) so I need a good rental yield.

I've costed up buying land and building and this will cost around $450000 (including holding costs) in a good suburb around 17klms west of brissy cbd. It should rent for approx $400-$450. With depreciation this should be servicable.

The other alternative is to buy inner ring brissy cbd but $450000 does not get you much by way of rental yield unless I buy a new townhouse or unit.

Any advice would be greatly appreciated.
Cheers.

 

[Tin Tin]

Its up to you I guess.. I would personally stay away from the units but that is just me. As I have a unit and house in Brissie, both in goood locations and house has done much better even though it gets a lot of noise and is very close to SE freeway. Dont like body corp fees with units too, they iritate me.

Perhaps you are buying out Moggill way, I know a few people who bought land out there for 215k and 240k and putting a house on for about 180k + holding costs. Surrounding houses are selling for 500k plus. Good instant equity for them.

Doubt you could get this return with a similar priced unit.. Unless you bought it off the plan with a delayed settlment and small deposit bond. Townhouse could be good, especially as households are getting smaller and you still have the land content.

Who knows??

 

[ianvestor]

I would normally recommend the house, however 17kms is way too far for my liking, preferring to stick to places under 10kms. So given those bounds, I would go for a unit, but not necessarily in the CBD. Perhaps something a bit further out, like Yeronga.