Are Units/ Apartments ever a good investment?

Discussion in 'What to buy' started by Alex123711, 22nd Jun, 2019.

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  1. Alex123711

    Alex123711 Well-Known Member

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    Or is it always better to buy a house?
     
    Alex123711, 22nd Jun, 2019
    #1
  2. larrylarry

    larrylarry Well-Known Member

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    Looking at the Mascot and Opal Tower saga... I prefer a standalone house but open to apartments that are well built, 4 in a block at max.
     
    larrylarry, 22nd Jun, 2019
    #2
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Yes, we clients numbering in the hundreds that have done well with strata style properties, and mamy that haven't done well at all.

    There is no one solution I would say

    Ta

    Rolf
     
    Rolf Latham, 22nd Jun, 2019
    #3
  4. jazzsidana

    jazzsidana Well-Known Member

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    jazzsidana, 22nd Jun, 2019
    #4
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  5. Marg4000

    Marg4000 Well-Known Member

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    A well located unit can be a good investment.

    Two of our best capital gains came from units, price nearly tripled in 10-12 years.
    Marg
     
    Marg4000, 22nd Jun, 2019
    #5
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  6. MWI

    MWI Well-Known Member

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    Yes if the demographics for the area are more units, if it is a great suburb where most wish to live say due to lifestyle or access to infrastructure or amenities, yet supply is low, if one cannot buy a house there instead can buy a unit, etc..
    Yet you wouldn't want to buy a unit say in an area where the demand is not there and the demographics also indicate preference for houses with families, more land in available for future developments, etc...
    Not all land appreciates in similar land, I could but in the desert all the land I want but if there is no demand for it.....then what, hence vise versa!
     
    MWI, 22nd Jun, 2019
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  7. datto

    datto Well-Known Member

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    I wouldn't knock a unit with a wrecking ball unless it was located in Mascot or Olympic Park and didn't have an 8 figure sinking fund balance. No probs with units from my experience. Houses have a larger land content so they appreciate better IMO.
     
    datto, 22nd Jun, 2019
    #7
  8. TMNT

    TMNT Well-Known Member

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    true true, however ,had you increased your budget and purhcased a free standing home in the same area, would the % increase been better or not?
     
    TMNT, 22nd Jun, 2019
    #8
  9. Marg4000

    Marg4000 Well-Known Member

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    Who knows? We were very happy with our profit.

    We could not have afforded a house in those locations.
    Marg
     
    Marg4000, 22nd Jun, 2019
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  10. Scott No Mates

    Scott No Mates Well-Known Member

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    If anyone around here appreciates a good block, it's @datto
     
    Scott No Mates, 22nd Jun, 2019
    #10
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  11. datto

    datto Well-Known Member

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    Appreciate it.
     
    datto, 22nd Jun, 2019
    #11
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  12. Beano

    Beano Well-Known Member

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    Nope
    I think without a doubt it is best to follow "@Omnidragon" example
    [Bought $1.8m 20 years ago. Not sure what rent was at the time as I was a kid, but probably $120k from memory.

    Today value around $24m, renting $350k or so.]
     
    Beano, 23rd Jun, 2019
    #12
  13. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    Strata units can be excellent investments in the capital cities.

    Remember, when you are investing, you are looking for land and location. But not all land is created equal. So a smaller allocation of more valuable land in inner ring suburbs can be more valuable than larger land quantities in less desirable locations.

    Many larger property investors have units as the foundation. Units also have higher yields than houses.
     
    John_BridgeToBricks, 24th Jun, 2019
    #13
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  14. kingstreet75

    kingstreet75 Well-Known Member

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    kingstreet75, 16th Jul, 2019
    #14
  15. Hetty

    Hetty Well-Known Member

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    My father bought his unit for $775k. I told him not to buy it, it was a terrible idea.. thankfully he didn’t listen to me because when he died 18 months later I sold it for $1.3mil.
     
    Hetty, 20th Jul, 2019
    #15
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  16. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    Can I ask what suburb was it in?
     
    John_BridgeToBricks, 21st Jul, 2019
    #16
  17. Hetty

    Hetty Well-Known Member

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    Woollahra
     
    Hetty, 21st Jul, 2019
    #17
  18. vincentlam0912

    vincentlam0912 New Member

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    Same question but more specifically on the Melbourne market. Is it advisible?
     
    vincentlam0912, 23rd Jul, 2019
    #18
  19. The Y-man

    The Y-man Moderator Staff Member

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    I've still got some (villa) units in the mid ring - have grown ok and rental income is quite good. Apartments are great when the market is booming (small outlay, big gain) but has been pretty flat where we hold (inner city) for the last decade or more.

    The Y-man
     
    The Y-man, 23rd Jul, 2019
    #19
  20. Sackie

    Sackie Well-Known Member

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    Buying a unit ( or any kind of dwelling at a certain price point) could be a fabulous move for one person and a really silly move for the next. Imho it all comes down to the individual's goals, financial circumstances, strategy and risk profile.
     
    Sackie, 23rd Jul, 2019
    #20
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