Your thoughts.......???

[Big Tone]

What would be the downside?
Having purchased a three bed townhouse about 6 months ago in a complex of 16, two others have come up for sale ( two bedders ), I am interested in purchasing these other two with a long term view of aquiring the rest if and when they become available over the next couple of years. Or is this a simple matter of having all your eggs..............is spread/diversify a better option.

My townhouse returning 7.8% gross, other two approx. 6-7%

I understand that every one has their personal strategies, but just trying to satisfy risk/strategy/comfort zone demons!

Your opinions are appreciated

Big T

 

[want2bewealthy]

Well if you think your investment is a wise one and all the numbers add up and look good then why not, who knows, you might even own the whole complex one day ;]

I prefer to invest in other areas though personally.

 

[The Y-man]

3 out of 16 might get you are decent say in the body corp.... and yes you could one day hold the lot, and ironically consolidate (opposite to subdivide) to make money if there is demand somewhere in the far future for a big block.

Cheers,

The Y-man

 

[WBG Redcliffe]

IMHO you are limiting your options to much and I'm sure with a little effort you could spread your wings a little further a field, lowering your risk and increasing your choices immensely.

What is your strategy?

 

[Big Tone]

yes, I think you are right....................after a little analysis, opting to purchase the other properties will seem easier but it won't get me out of my comfort zone!!! of which I think I will miss other opportunities.

 

[landlubber]

check with your lender first

If you're thinking of doing this .... check with your lender first ...sometimes they get "thingy" if you own too many in the one development.

LL

 

[Big Tone]

If you're thinking of doing this .... check with your lender first ...sometimes they get "thingy" if you own too many in the one development.

LL

Really, I didnt know...................why would this be do you think?

 

[Rolf Latham]

Hiya

Depending on ur finance sitaution, also be aware that beyond 3 or so many lenders wont dish out money becaue you have a concentration risk

ta

rolf

 

[Big Tone]

Would this issue be based on the fact the properties are in the same block or could it extend to properties in the same suburb?

 

[Rolf Latham]

Hiya

Concentration risk refers to the same development

ta
rolf

 

[asdf]

Just get Rolf to fund it for you. Theres enough lenders out there, even if you have to use LMI. Is it northside?

 

[PrimeCommercial]

I would have thought a controlling interest at strata meetings would give you more opportunity for CG with regards to upgrades to the complex.

Thats what all the Billionaires do anyway. Richard Branson/Kerry Packer, naming rights and controlling interest, doesn't necessarily have to be a majority interest to be controlling

 

[ziggy2214]

Big tone

The returns are not bad but I feel that you are moving too quickly.
6 months is usually not sufficient time to know the complex well.
Have you got a building report for the 1st one?
Do you want to tell me the suburb?

cheers

 

[kathryn d]

If you think this is a great building, go for it.

You may even be able to buy more before they are put on the market (if your finances allow).Contact the owners privately and save on REA commissions.

 

[Oscar]

I had the same designs in an art deco block of 10. I found that once i owned 2 of them, I had a pretty good probability of getting my own way at the owners corporation level, which gave me a good level of control. Beyond that, there was not much upside so I spread my interests to other parts of the suburb and glad that I did.

 

[Wishlist]

If you just want more control in the BC then purchasing another couple might get you there, but remember that Body Corporates can be wily creatures, and if you happened to get other members offside they can lobby to get the support of other members to vote against your proposals.

I once heard realestate agents discussing how a big developer had bought all the units in a block bar one (planning on putting up a highrise). The owner was determined not to sell and despite what was related as being some pretty mean efforts on the part of the developer, the owner couldn't be persuaded.

It seems anecdotally that any opportunity to purchase a complete complex would come about by chance, and isn't something that can be planned where there are a multitude of different owners.

Wishlist