Terrace. Good investing?

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From: Peter Davidson


Hi,

I'm about to buy a Terrace inner City for about 300K, 2 bedroom in Brunswick, Melb. Use it for investment first and then maybe live in it few years down the track. Is there anything I should be aware of in investing in Terraces. What's the definition of a Terrace anyway and how does it differ to an apartment, unit?

Thanks.

 

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Reply: 1
From: Jeremy Laws


You will not get a better investment in resi RE than a Terrace. Your reno costs will be quite high. You will also have big issues with local councils etc. if you want to change anything. They are (terraces)each similar, but unique in their own right. This is the key to their value. As a guide, and it was suggested to me, if the upstairs floorboards need replacing/repair, allow $200,000. By the time you finish fixing everything you will be up there easily. You _might_ not need it all, but it is a good guide. When I was in that position I was told $100k, but that is now unrealistic. I wouldn't bother with a building report, unless you want an excuse not to buy. Get a colourbond roof ASAP, unless you have slate in good condition. Happy shopping!