Pros and Cons of buying a Luxury unit

Discussion in 'Property Investment - Other' started by MarkA, 29th May, 2015.

  1. MarkA

    MarkA Member

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    I'm looking at purchasing a high end unit in Scarborough (WA) for around a million dollars. I own my own business and currently renting.

    Just looking at the pros and cons of such a purchase?

    Would you spend this much on a PPOR?
     
  2. skater

    skater Capitalist

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    Possibly, but not on a unit.
     
  3. Ace in the Hole

    Ace in the Hole Don't compete, Dominate !

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    Why wouldn't you spend a million bucks on a PPOR, it's the median price these days.

    Pros:
    Nice and clean, no maintenance or building issues to take care of.
    Easy living, convenient living.
    Cons:
    Not much if any outdoor private areas, can't modify like a house and can't do much to add value or personalise the exterior.
    Likely noise issues, of all sorts, from neighbor, (biggest issue IMO)
    Not much free space if you want to do a hobby or something that needs a bit of space.
     
  4. Nick Valsamis

    Nick Valsamis Vantedge

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    The amount you spend will be proportionate to the lifestyle you want. Some people may spend more than 1mil for certain luxuries.

    But the question about if people would spend that much will vary for each person so only you can decide if spending that much and buying there will be the right lifestyle and location you want.
     
  5. MIW

    MIW Member

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    It doesn't matter whether it is a unit, house or townhouse, etc..., whether it is PPOR or investment. To me the question would be is it a lifestyle choice or investment first?
    Thus even if it was PPOR or investment, I would like to know I am buying at median price for the area, so that in down turn, I am less exposed to risk with my purchase........ This is just in case I had to sell for unforseen circumstances!!!!
    Now if the median Unit price currently is $570K, and the median House price currently is $812K, that's what I would be prepared to pay, paying around the median price for each! Unless there was an exceptional feature, I may be prepared to pay for the view, extra garage, etc...something unique and special, but again I would do my research on how much such properties sell for!
    Seems, you do not know why you are buying??? Even your PPOR can be perceived as an investment, especially if you had to quickly sell!:)