Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Buying houses for land component not as smart as you think

Notify me of new replies via email
Your Investment Property | 22 Nov 2012, 10:10 AM Agree 0
As detached houses become increasingly unaffordable, units are sometimes wiser investments, but there’s more to the story. Units can be better for reasons you’d have never dreamed
  • Alisha Kennedy | 22 Nov 2012, 02:59 PM Agree 0
    I would have to agree! We own a 1 bedroom investment unit on the second floor. Altho we do get impressive rent we are also having extreme difficulties in selling. Going onto 2 years of being on the market with a few interests that havent progressed into anything other than an inspection we intend to purchase a unit that has more than 1 bedroom, on the first floor, and a complex that has not got an inbuild elevator or numerous of pools as the body corporate fees are ridicously high and not to mention the extra repair costs. To add to all of that the complex is situated on a busy main road which turns most potential buys off it straight away even tho the noise is completely blocked off once you enter the complex. If only we knew these tips 6 years ago!
  • frank | 22 Nov 2012, 04:04 PM Agree 0
    yep Alisha - beginner's mistake - buying on a main road because the same-size unit is cheaper - you think it's a deal until you come to sell - and then guess what - the main road has got busier/noisier/more unpleasant, and your capital gain is actually proportionately less than it would be had you bought in a more pleasant quiet street

    one-bedroom with lifts and pools - yep - another relative killer on costs

    I saw a current ad for a one-bedroom in the city - supposedly renting for $800pw - sales history $600k 3 years ago, $640k last year - wonder what they'll get for it on this resale - handover to the next gullible ...

    now that you've had that experience I may suggest avoiding new off-the-plan, and views unless they can never be built out, unlikely unless absolute waterfront - and go for north-facing living, south-facing sleeping, cross-ventilation with a minimum of east/west to avoid excessive summer sun

    talk to neighbours/residents about existing problems, check strata records (like $30 per hour in person), talk to lots of open inspection agents, have your finances ready, put in lots of low ball offers, and be ready to whack down a deposit and sign an unconditional contract as soon as you see the right property
Post a reply