Which one would you buy?

[Angelissa]

I have been considering two apartments both which are coming up for auction.

It would be an investment property, I've been tossing up which would offer better growth over the long term and which would make the better investment. Both locations are comparable.

Apartment A
1 bedroom plus study in art deco building with access to small common courtyard, about 10sqm bigger than Apartment B, however the bedrooms are quite dark as unit is on the ground floor, requires about $20k for a minor reno. Strata levies approx $450pq.

Apartment B
1 bedroom in an older high rise building with balcony. Stunning water views from the balcony and bedroom. Requires about $5k in reno. Strata levies approx $900pw.

Neither have off-street parking.

What do you guys think?

 

[Rixter]

Apartment B
Strata levies approx $900pw.

Is that a typo - $900 per week?

Angelissa, do they fit into your chosen investment strategy?

What are you looking to get from them?

Those are the questions you need to be asking yourself,not us because we dont know what you will be wanting from them.

The property it self is purely the vehicle that fits into your strategy to deliver you to where you want to go.

Hope this makes sense.

 

[ianvestor]

Which one has more land content?

Is the art-deco building in a demolition control area?

 

[Angelissa]

Whoops - $900pq!

Apartment A has more land content as there are only approx 20 apartments on that block vs 70 apartments in Apartment B's block. Its in a heritage area with lots of period features so I would say demolition in future would not be possible.

 

[Ralph]

Angelissa,

I'd ask myself which one fits better with the area you are purchasing in, and the type of people living/wanting to live in the area. e.g. an orange brick 70's apartment block nestled within a bunch of art deco blocks is likely to not do as well (in my opinion).

You've clearly decided a 1 bed is the way to go, so that means young singles and young couples? (unless a retirement area).

Which apartment (including the feel of the block) would lend itself to be something a tenant would be proud to bring friends back to?

Light is also very important in my view.

There's no single metric, it's a question of weighing all these up....

Good luck.

 

[Aimjoy]

Apartment B
1 bedroom in an older high rise building with balcony. Stunning water views from the balcony and bedroom. Requires about $5k in reno. Strata levies approx $900pw.

I'd always go with the water views - make sure they can't be built out though.

Also make sure that you can get enough %LVR - make sure the units are over 50sqm.

Check the body corporate thingy to make sure they are not about to raise any special levies for construction / rectification works.

Neither have off-street parking.

If its in the CBD I guess that's OK - if its the accepted norm for the area. Otherwise I'd move on from both of them.

Aimy