Are Units/ Apartments ever a good investment?

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

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  1. larrylarry

    larrylarry Well-Known Member

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    You gotta move it move it
     
    larrylarry, 24th Jul, 2019
    #21
  2. Sackie

    Sackie Well-Known Member

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    Objection, badgering the witness :p
     
    Sackie, 24th Jul, 2019
    #22
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  3. hammer

    hammer Well-Known Member

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    Not all units are created equal....

    It's been ok for us. But we bought a villa forfour PPOR in a block of four as opposed to a high rise.

    We're in one of the biggest housing busts in the country in Darwin and the villa means we hold our value much better, it's easier to rent out (pets allowed), easier to manufacture equity (add a br) and we're in the best part of town.

    If we had bought a high rise the outcome would be VASTLY different!
     
    hammer, 24th Jul, 2019
    #23
  4. Paul Mete

    Paul Mete Well-Known Member

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    Units are an excellent investment if you buy them at wholesale prices.

    This can be done by developing yourself and effectively purchasing at well below market price.
     
    Paul Mete, 21st Aug, 2019
    #24
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  5. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    Paul, I don't think it is realistic to say that only people who build apartments make money out of them. It is also not true to say that apartments don't perform. They most certainly have a great track record in Sydney and Melbourne.

    Most larger property investors have apartments as the cornerstone of their portfolios.

    Apartments can vary a lot, in terms of size, height, age and build quality.

    If you choose wisely regarding the variables above, apartments are an excellent way to build a property portfolio.
     
    John_BridgeToBricks, 22nd Aug, 2019
    #25
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  6. Sackie

    Sackie Well-Known Member

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    Agree with others, you definitely can do well with units.

    I have a gaggle of apartments in my portfolio and their growth ranges from 50% to hundreds of percent. All bought retail and did cosmetic renos to most.
     
    Sackie, 4th Sep, 2019
    #26
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  7. skater

    skater Well-Known Member

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    skater, 4th Sep, 2019
    #27
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  8. Alex123711

    Alex123711 Well-Known Member

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    What types of units are the good investments?
     
    Alex123711, 4th Sep, 2019
    #28
  9. The Y-man

    The Y-man Moderator Staff Member

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    In Melbourne for apartments this equates to meeting all of:
    • within 10 min walk to station (preferred) or tramstop
    • close to, but not inside, CBD (5~7km radius)
    • as big a floor space as you can get for the price (floor space is more important than age)
    • no lifts
    • no pools
    • no gym/sauna/spa
    • no onsite concierge
    • car park on title (undercover, garage and storage are bonuses)
    • a reasonable active OC (keeps up with all necessary building repairs)

    Villa units: pretty much as a stand in for a house in a good location but your budget doesn't meet a house in the same locale.

    The Y-man
     
    The Y-man, 4th Sep, 2019
    #29
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  10. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    ... and low-rise. Most important thing.
     
    John_BridgeToBricks, 4th Sep, 2019
    #30
  11. The Y-man

    The Y-man Moderator Staff Member

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    This get sorted by the "no lifts" condition. It implies low rise ~ many people have differing views on "low rise" so I just say no lifts :)

    The Y-man
     
    The Y-man, 4th Sep, 2019
    #31
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  12. Trainee

    Trainee Well-Known Member

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    In sydney prefer the redbrick sixpacks.
     
    Trainee, 4th Sep, 2019
    #32
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  13. Alex123711

    Alex123711 Well-Known Member

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    Curious about the close, but not inside 5-7km radius? What's the reasoning for that?
     
    Alex123711, 4th Sep, 2019
    #33
  14. The Y-man

    The Y-man Moderator Staff Member

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    You're right ~ I guess I didn't really need to mention the non-CBD thing, as the other conditions such as no lift/no gym would preclude the big tower developments. The only other concern is (and brokers correct me) that postcode 3000 used to be harder to get finance for ~ but that was a long time ago and not sure if this is still the case.

    The Y-man
     
    The Y-man, 4th Sep, 2019
    #34
  15. skater

    skater Well-Known Member

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    Personally I prefer the ones that are $100k under market. :D
     
    skater, 4th Sep, 2019
    #35
  16. Heinz57

    Heinz57 Well-Known Member

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    If you buy the block they can be
     
    Heinz57, 4th Sep, 2019
    #36
  17. Travelbug

    Travelbug Well-Known Member

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    I don't think you can generalise. Some units are good, some houses are good.
    I have houses, units and a townhouse in Sydney. All doubled in price in the last 8 years. The units and townhouse had a higher gross yield and all rents increased at similar rates. I'm happy with all the purchases.
     
    Travelbug, 4th Sep, 2019
    #37
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  18. jins13

    jins13 Well-Known Member

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    Depends on the location and demand of the area. I would also look at other factors such as sinking funds and strata minutes to ensure there are no massive maintenance issues
     
    jins13, 6th Sep, 2019
    #38
  19. Sackie

    Sackie Well-Known Member

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    Why stop at only100k :p
     
    Sackie, 7th Sep, 2019
    #39
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  20. skater

    skater Well-Known Member

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    Because in the market I play in, $100k is a lot of money. :p
     
    skater, 7th Sep, 2019
    #40
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