Out of curiosity, are they strata or company title? Strata Deco units in a well located part of Sydney have been very hot for as long as I can remember...Company title can be a little harder to shift given bank lending criteria + they often do not allow tenants which makes it a no go for investors...That said there are some Company Title blocks in Potts Point/Elizabeth Bay/Double Bay that command ridiculously high prices due to how fastidiously they are maintained, run and looked after by their owner occupants.
Newish Units vs Older Units - Any advice appreciated
- Thread starter mrmonopoly
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Out of curiosity, are they strata or company title? Strata Deco units in a well located part of Sydney have been very hot for as long as I can remember...Company title can be a little harder to shift given bank lending criteria + they often do not allow tenants which makes it a no go for investors...That said there are some Company Title blocks in Potts Point/Elizabeth Bay/Double Bay that command ridiculously high prices due to how fastidiously they are maintained, run and looked after by their owner occupants.
I would assume that it is strata titled.
Again it could be that some auctions i went to have been bad
I know a building where 2 bedroom apartments have been sold on the same level 11 for like 530K and 630K with only couple of sqm in difference and no diff in features, unrenovate too and within a 3 month period.
So - most likely timing, selection and market conditions.
Again it could be that some auctions i went to have been bad
I know a building where 2 bedroom apartments have been sold on the same level 11 for like 530K and 630K with only couple of sqm in difference and no diff in features, unrenovate too and within a 3 month period.
So - most likely timing, selection and market conditions.
From your other thread it sounds like you aren’t considering Kogarah anymore but I thought I would let you know that Kogarah and the shire was on someone's 'suburbs not to buy in' list - I think it was in Hotspotting.
We were looking down there due to affordability but realised there is not a lot of CG predicted.
We were looking down there due to affordability but realised there is not a lot of CG predicted.
Yeap, thats correct. I think Kogarah has a lot going for it 18mths -2 years ago i.e. Decent yields, prospects of CG in both short term and long term. Now it seems to have really over cooked itself and in my opinion is slightly overvalued, with very average yields.
That said if you look into the long term infrastructure and development plans for the area I still think long term you will really start to see Kogarah become a growingly desirable place to live and pull away from the likes of neighbouring Rockdale and Hurstville.
the really new ones: built within the last 1-2 years and all off the plan ones. I would tend to agree.
But...old 70's ones aint that good either.
Go for a unit thats about 8-12 years old.
Those are usually bigger than the brand new ones, and more modern than the 70s/80's ones ( which require a lot of maintennance and thus costs)
agree - most i have bought were late 90s and early 2000s
Mr M,
We've been purchasing near new property over older style property for several reasons, the main ones being (in no particular order) -
1/ To maximise my Non-Cash depreciation deductions
2/ To minimise my maintenance & repair costs
3/ More modern & Attractive to tenants - thereby minimising potential vacancy rates
4/ Ask a higher rent - thereby Maximising yields
Without getting into the "which is better debate, houses or Units", we prefer to purchase Townhouses & Villas with a courtyard component thereby eliminating multi story units or high rise apartments, for several reasons.
The mains ones being (in no particular order) -
1/ lower maintenance & upkeep for the tenant
2/ lower purchase or entry level into a Higher capital growth suburb area
3/ rapidly growing marketplace (starting both now & into the future) wanting these type properties. This is due the largest group of people to ever be born (being the Babyboomers and Empty nesters) starting to come into their retirement years. They will be wanting to downsize for the following main reasons - lifestyle & economic.
4/ greater tax advantages & effectiveness thus maximises cashflow.
5/ able to hold more individual properties spread across your portfolio - thereby minimising area over exposure risks by not holding all your eggs in only a few baskets, so to speak
We look to buy in areas with a historic Cap growth of 7%pa and/or are under gentrification. I look to where the Govt, Commercial, Retail, private sectors are injecting money. This ultimately beautifies the area and people like the looks so move in creating demand.
We have found this works extremely well if you are looking for short to medium term capital growth so as to leverage against and build your portfolio faster.
I hope this helps.
We've been purchasing near new property over older style property for several reasons, the main ones being (in no particular order) -
1/ To maximise my Non-Cash depreciation deductions
2/ To minimise my maintenance & repair costs
3/ More modern & Attractive to tenants - thereby minimising potential vacancy rates
4/ Ask a higher rent - thereby Maximising yields
Without getting into the "which is better debate, houses or Units", we prefer to purchase Townhouses & Villas with a courtyard component thereby eliminating multi story units or high rise apartments, for several reasons.
The mains ones being (in no particular order) -
1/ lower maintenance & upkeep for the tenant
2/ lower purchase or entry level into a Higher capital growth suburb area
3/ rapidly growing marketplace (starting both now & into the future) wanting these type properties. This is due the largest group of people to ever be born (being the Babyboomers and Empty nesters) starting to come into their retirement years. They will be wanting to downsize for the following main reasons - lifestyle & economic.
4/ greater tax advantages & effectiveness thus maximises cashflow.
5/ able to hold more individual properties spread across your portfolio - thereby minimising area over exposure risks by not holding all your eggs in only a few baskets, so to speak
We look to buy in areas with a historic Cap growth of 7%pa and/or are under gentrification. I look to where the Govt, Commercial, Retail, private sectors are injecting money. This ultimately beautifies the area and people like the looks so move in creating demand.
We have found this works extremely well if you are looking for short to medium term capital growth so as to leverage against and build your portfolio faster.
I hope this helps.
Everyone to his/her own strategy.
I was still in school in the 80 to 90s- so yeah try that strategy now with the current prices on current income levels and see where you end up - in debt and being trapped to your mortgage (people who bought 10-20 properties accumulated during those decades are laughing) - can't apply to those trying to enter the market now
I was still in school in the 80 to 90s- so yeah try that strategy now with the current prices on current income levels and see where you end up - in debt and being trapped to your mortgage (people who bought 10-20 properties accumulated during those decades are laughing) - can't apply to those trying to enter the market now
Hmm hasn't stopped us the last 10 years.....and we've started a family along the way, all this on the average wage (wife works part time) as well.
err.. yeah the last 10 years. try last year starting out.
say someone on 50K income today wants to buy a townhouse here in armadale or malvern.
On everything being equal as in income level and time (as correct decade 2010) -
hell yeah who wouldn't want to invest and buy 10 X houses today not 10 years ago - but reality is many can't.
We did buy (Sydney) last year....basically every year (some years bought 2) if you want to average it out.
The average wage is mid $60k now days...just gotta start out in areas where they can best afford (subject to the usual investment fundamentals) not where they'd wish they could buy.
i think i did "starting out"
i bought 5 properties last year but my conditions and style would not apply to someone who is starting out. That's the same to those many seasoned investors like yourself.
Even if he/she bought in say pt cook which is the equals to an affordable suburb or those western areas in melbourne - with the current I/R won't mean. i don't think anyone on 60K who bought last year say a house 420K in pt cook would be able to afford another property that easily. Add a car, social factors etc and you're end up just being behind.
The area has undergone a significant amount of construction over the last few years. It is a major station and new apartments/units have been built on one side. Close to St George Hospital and a good selective school.
But, the new apartments that have gone up are pretty shoddy. Look out for cracks and peeling on the exterior structure. These ones are pretty new too.
Some of the deprecation report gives a higher deduction towards on the end. It takes into account everything.
Unless you're earning a massive amount of salary - would be thinking carefully on purchasing based on deductions alone.
Unless you're earning a massive amount of salary - would be thinking carefully on purchasing based on deductions alone.
I tend to agree with this. The tax benefits are the cream on top, concentrating on the fundamentals first is key to building a successful portfolio.
Thank you for the advice. I need rethink my way.
I thought the perfect IP for me will be:
1 negative gear financially(considering depriciation)
2 positive gear cash flow(not considering depriciation)
3 potential good CG
Seem like item 1 is not important at all . To be honest , I don't eary massive salary
. Item 2 and 3 are the keys for successful portforlio.
Thanks!
I thought the perfect IP for me will be:
1 negative gear financially(considering depriciation)
2 positive gear cash flow(not considering depriciation)
3 potential good CG
Seem like item 1 is not important at all . To be honest , I don't eary massive salary
. Item 2 and 3 are the keys for successful portforlio. Thanks!
