Regional house or city apartment?

[charliebean]

I keep leaning towards one and then change my mind and go with the other, it's starting to get a bit overwhelming so any advice would be much appreciated.

Option 1 - apartment in Blacktown under $350k. I am looking for something that is newer then 1985 or that has been reno'ed or something I can do a smakk reno on (for depreciation)

Option 2 - House in a regional area under $350 - considering Bathurst, Orange, Singleton or Muswellbrook. Ideally I would love a larger block with potential to subdivide down the track and either a reno or something that has been reno'ed.

This is my first IP so I would prefer the option that has less financial commitment.

Any feedback appreciated.

 

[The Y-man]

I personally tend towards the one which I am more familiar with in terms of the tenant market - in other words, which one do you associate your past experience more with in terms of living in? (I've lived in a large metro all my life, so I am less comfortable with regional markets).

The Y-man

 

[luvvit]

Charliebean

Whats your end strategy? are you in it for the long term or short term? If its long term, then I (personally) would opt for a house in a regional city or suchlike that had (albeit) slower capital growth, but something I can value add to, such as a dual occ/granny flat or as you mention, subdivide and maybe sell off the excess block or develop it....

More to work with when you have land involved, but again, it comes down to your strategy and of course, the dollars....

my 2c and only my musings...

Luvvit.

 

[mrmonopoly]

I keep leaning towards one and then change my mind and go with the other, it's starting to get a bit overwhelming so any advice would be much appreciated.

Option 1 - apartment in Blacktown under $350k. I am looking for something that is newer then 1985 or that has been reno'ed or something I can do a smakk reno on (for depreciation)

Option 2 - House in a regional area under $350 - considering Bathurst, Orange, Singleton or Muswellbrook. Ideally I would love a larger block with potential to subdivide down the track and either a reno or something that has been reno'ed.

This is my first IP so I would prefer the option that has less financial commitment.

Any feedback appreciated.

Just curious why does the apartment have to be in Blacktown?

I can understand the regional areas you refer as they are all strong for various reasons and are often commented on by the likes or Terry Ryder and Margaret Lomas, however I dont understand why for a metro apartment you would only consider Blacktown.

For that kind of money its possible to get all of the things you are looking for i.e. Post 1985, in much more central areas (such as inner west), with better yields (6%+), lower vacancy rates(<1%), stronger prospects for CG (Urban renewals, ugly ducklings come good). Ultimately its an investment so the only thing that really matters are the numbers.

Just my 2c thoughts, just think you should cast your net wider.

 

[china]

apartments

I keep leaning towards one and then change my mind and go with the other, it's starting to get a bit overwhelming so any advice would be much appreciated.

Option 1 - apartment in Blacktown under $350k. I am looking for something that is newer then 1985 or that has been reno'ed or something I can do a smakk reno on (for depreciation)

Option 2 - House in a regional area under $350 - considering Bathurst, Orange, Singleton or Muswellbrook. Ideally I would love a larger block with potential to subdivide down the track and either a reno or something that has been reno'ed.

This is my first IP so I would prefer the option that has less financial commitment.

Any feedback appreciated.

You can buy a 230k two bed room apartment on the central coast and get a weekly rental yield of 280. This has got to be better than either of the above options.

 

[_Kaos_]

0.8 vacancy rate for Blacktown which is an obvious positive. I think you should take another 100k off your $350 k though as there is some stock for about 250k and under. The modern apartments are pushing over 250k but you mention you are open to some quick renos.

Possibly pull in $300 p/w rent (6% + yield) so the numbers are not that bad I guess. Unless I am missing something. Would love to hear from the more experienced investors.

I am of the same mindset as Y man and look for properties I would rent from my experience as a tenant; however, this can be construed as getting emotional about a property which is a no no. Food for thought.

 

[locko24]

Extremely tight rental market in Orange at the moment, and have had some pretty fantastic CG, what with the Massive mine expansion, and brand new hospital - who knows if the CG rate can be maintained!
Bathurst is in a similar position to Orange - a lot of people commute between the two.

I'll admit i know absolutely nothing about Blacktown though...

 

[locko24]

A 7-8% return isn't too hard to find out this way, if you're willing to look!

Oh, and apparently there is a desparate shortage of serviced/ furnished places out here - popular with the mines contractors in particular.

Cheers

 

[chilliblue]

A 7-8% return isn't too hard to find out this way, if you're willing to look!

Oh, and apparently there is a desparate shortage of serviced/ furnished places out here - popular with the mines contractors in particular.

Cheers

Be careful of buying as a serviced apartment as the facts are not actually true. Was the case up to late last year and some people are making good money, but in fact there are still several furnished properties available and have been for several months.

 

[BuildingBlocks]

I keep leaning towards one and then change my mind and go with the other, it's starting to get a bit overwhelming so any advice would be much appreciated.

Option 1 - apartment in Blacktown under $350k. I am looking for something that is newer then 1985 or that has been reno'ed or something I can do a smakk reno on (for depreciation)

Option 2 - House in a regional area under $350 - considering Bathurst, Orange, Singleton or Muswellbrook. Ideally I would love a larger block with potential to subdivide down the track and either a reno or something that has been reno'ed.

This is my first IP so I would prefer the option that has less financial commitment.

Any feedback appreciated.

Are you only looking at units in Blacktown because you think that the houses are too expensive, or the yields are not strong enough for you?

What are you aiming for with this property? Just less financial commitment, so higher yields?

Why not look for a house in the Blacktown general area for under $350k?

 

[eyespy]

hey locko24,

can u give some insight into what capital gain you've had so far in orange ?

 

[cadence]

you can buy a house in blacktown and surrounding suburbs for $350k.

 

[Jacque]

BB and JigglyPuff are spot on. Why buy a unit for $350K (which I woudn't spend in Blacktown) when you can buy a house and add some value instantly?
Also look in surrounding suburbs for houses, including townhouses and duplexes where possible.

 

[locko24]

hey locko24,

can u give some insight into what capital gain you've had so far in orange ?

Check out this chart of growth:

http://www.realestateworld.com.au/r...urb=Orange&postcode=2800&lga=Cowra&proptype=H

 

[InnerWestie]

I am of the same mindset as Y man and look for properties I would rent from my experience as a tenant; however, this can be construed as getting emotional about a property which is a no no. Food for thought.

Rather than looking at whether I would necessarily be interested in a property as a prospective tenant, I expand the idea a little further and ask, what do tenants in this area typically look for? Usually you know someone who lives or has once lived in the area and you can often ask them for an opinion. Local knowledge is hard to beat...

I've even been known to ask people at the local coffee shop about specific buildings, their rental expectations etc.

Works for me.