My friend and I who are thinking of investing together are constantly toing and froing over what is the best sort of property to invest in at the moment. I was just wondering what people thought when it comes to investing in house & land, townhouses and apartments?
If you follow the fundamentals that land increases in value while building decrease in value - then you want the most land content as you can (eg houses, or at a push, perhaps a townhouse). However, that's not to say that you can't make good money on units if you purchase well and time the market - just stay away from units with lifts and swimming pools - both are money pits.
Chris I generally avoid units because they are easy to build and you can get too many of them in some areas. What Sim said about high strata fees in complexes with lifts and pools is usually true, but it's not always the case. In some complexes the developers have arranged it that way. In others, these costs are spread between the many owners and the strata fees are not much higher than normal. What do I buy? I prefer townhouses because they come with a small yard. I also prefer houses but this doesn't mean that it's the best choice for every one. Yields in apartments have gone up in recent times so this is something to consider but I'd avoid high rise buildings. IMHO Cheers
