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Better to buy a house in semi regional area or unit in suburbia?

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Jo | 25 Jan 2013, 10:42 AM Agree 0
My husband and I are just starting the research stage on the way to buying an investment property. I know location counts for a lot but was wondering if anyone could offer some advice on the following?
Is it better to buy an old house on a decent block (819m2) in a semi regional area (Melton). Or a unit in a more desirable suburb, closer to the city of Melbourne, near the beach and transport (Seaford).
The cost to buy is about the same although the rent in the beachside suburb is higher. However, there is potential to subdevide the large block and create two properties.
As an investment, which is better?
  • Eos Property | 25 Jan 2013, 12:48 PM Agree 0
    Hi Jo. A lot of Melton properties were targeted at, and sold to, first home buyers and property marketing groups. For this reason alone any Melton property you purchase would need to be 'special' so it rises above the general suburb - even with a good choice I suspect performance of the property will track Melton's performance over the long haul. Given Melton is some distance from Melbourne any growth is likely to be spasmodic and dependent upon promised infrastructure improvements going in.

    When choosing your property start at the end.

    What are you trying to achieve? One property? Two or more? What role will investment properties play in your financial future? What skill sets do you and your husband have? What is your current financial status? How much can you borrow? Do you have time to renovate/sub-divide? Are you hands-on or set and forget people? What is your risk tolerance like? Family situation?

    The answers to all of these questions and many more will help you work out which property is best for you.
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