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1 bd apartment in a good suburb vs house in a bad suburb

Discussion in 'General Property Chat' started by Melb.F, 31st Aug, 2016.

  1. Melb.F

    Melb.F Member

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    VIC
    Hi Everyone,
    Which one is going to perform better, a one or two bedroom apartment in an old building in a nice classy suburb like Toorak or Prahran in Melbourne or a house in a low level ( in terms of crime and...) suburb in outer western suburbs of Melbourne?

    My concern is people who rent a house in low level suburbs.

    Thank you,
     
  2. Ed Barton

    Ed Barton Well-Known Member

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    Brisbane
    Rent or capital gain?
     
  3. Melb.F

    Melb.F Member

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    long term capital gain (20 years) but I want to avoid trouble that can be cause by a bad tenant as well
     
  4. oki doki

    oki doki Well-Known Member

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    Canberra
    you can get idiot tenants in supposedly 'good' suburbs too - no guarantees there.
    also, in long term whats 'bad' now could be 'good'/or 'great' later...
     
    ellejay likes this.
  5. JDP1

    JDP1 Well-Known Member

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    If 20 years is your horizon, you would be better off with the apt in blue chip suburb. Of course tenants there van be troublesome as well..but chances of getting such tenants in those areas is much less than in more troublesome areas.
    You will need to be fairly sure it will be long term 20 yr or so hold. If this is not the case, I would think about the house for quicker cg.
    Alternatively, you could opt for a townhouses...in areas not as bad as the house but not Toorak etc either. As long as the townhouses is well located and with a bit of land should outperform both the house in Western and apt in blue chip over 20 yrs.
     
    Melb.F likes this.