Examples wanted pls re $500000 flat in good suburb, or house further out will get me richer faster?

$500000 apartment in good suburb, or house further out which will get me richer faster?

can someone help me with some examples of whether i'd get more capital growth and rent if i bought a flat in a better suburb or a house if an outer suburb

i understand houses have mor options for wealth
eg more bedrooms to rent out
possibly ability to subdivide and sell
or put a granny flat and rent house and granny flat
or demolish and build a few units or semi detached 2 storeys and sell those for profit.

can anyone give me examples of possible apartments in good suburbs and a house further out and of rent or capital growth comparisons just as general examples of info you have learnt please.
thank you.

 

I'm sure examples exist going both ways. I'm not sure how they would help you however. What are you trying to do with the information exactly?

 

I have children and relatives, who want to save for a house in good suburbs( thats the goal,

but that can take forever as a house in a good suburb costs a fortune . i believe there might be a step before that to get them to their goal maybe in 5 or 10 years by first buying and paying off something else first .

they might not be savvy to subdivide, put a grann flat , build and sell units or do alot of other things. they will probably just do a bit of painting and cosmetic , or if they can find a way to make a dining room into a bedrom for more rent they might do that.
i wonder if the only thing the did do was buy something worth 500000, paint it or do a bit of cosmetic, rent it and pay it off or rent it out to help pay it off and then sell that or borrow against that to buy what they really want,- which is a house in a good suburb , then what are the advantages of buying an apartment in a better suburb or a house in a further subrb to achieve that goal
maybe the house has capacity for more bedrooms and the rent can pay the mortgage faster
maybe the apartment in the better suburb will go up in price faster and can be sold for more in 5 or ten years to then help them buy a house in a good suburb

what is info that will help then take the best smaller steps now to achieve a house in a better suburb asap.

thank you.

 

what do you advise your kids who want a good house in a good suburb

what sort of steps might lead to that

eg save and then buy and pay off what.
if they save and could buy something worth 500000 and pay that off first, and then either sell that or borrow against that to buy what they really want which is a house in a nice suburb then what should they buy first for the 500000
what are the advantages for them to buy a house further out from the city,
or what are the advantages to buy an apartment in a more desireable suburb

generally speaking 5 or 10 years later would the apartment in a better suburb maybe be worth more and can be sold or borrowed against to buy their desired house in a nicer suburb

or would it be better to buy a house with as many bedrooms as possible, and would that pay off the 500000 faster and help them faster to move on to their dream home in a nicer suburb

what is info they need to know that might help them with how to get to their desired home in a nice suburb

Thanks.

 

What do I say???

"work hard kids, cos I aint leaving you anything!"

 

Predictions are predictions
We can all see what had happen but it is impossible to see whether the future will repeat the same way
Just buy what you can afford and do not over commit yourself

 

Save up and work your way up fast on salary bracket

Moving around to different suburbs were useful. It helped clarify what I do/don’t like and allow me to look for good suburbs that are still in price range.

 

+1. If you want a get rich quick scheme try bitcoin.

 

One house or one unit will not make you rich.

 

i understand all that has been said but there still must be pros and cons to spending 500000 on an apartment that is more inner city
or spending same money on a house but further out .
Skater, and others who are experienced please , you know alot about property can you please elaborate more on the possible pros and cons of each as a starting point and stepping stone to then purchase bigger and better please.

what do you advise your kids in this situation wanting to take a stepping stone to buy a house in a good suburb
I have a friend who first bought an apartment , then sold that and bought a uni, then sold that and bought a nice house , all in a good suburb their ideal suburb.but i wonder if other stepping stones might be better eg a house for same price even if further out.
please i'd like your thoughts please of pros and cons and choices please.

 

i know of people who bought during a boom in an outer suburb and they really regretted as the extra hours it took them to get to work and back wasnt worth it.

i know someone who bought an apartment in their ideal suburb, paid that off then sold that for a unit, then sold that for a house

i'd like to hear from experienced property investors about the pros and cons of different ways of spending 500000 for an apartment in a better suburb as apposed to a house in a further out suburb, and paying that off somewhat before selling or borrowing against that to buy the next.
I know we cant base the future on the past, but for this question i would like people with knowledge to please use past knowledge to advise meof the pros or cons of each of these choices please as a stepping stone to get to the goal of having a house in a better subrb please.

 

The current market has seen a surge of units built hence houses have been the better choice recently. Some markets have been very strong leading to buckets of money for owners. The most typical method to wealth is to build a large portfolio via a buy, renovate and hold to rent strategy. However the level of success varies and the pros and cons of each are extensive. I suggest buying a simple textbook on valuation as well as sticking to this forum.

 

Dont forget what may NOW be not such a good area may be a great area in the future.

 

Hi @justine77, have you taken the time to thoroughly read through the excessive amount of knowledgeable information posted on PC? I know when I first signed up I sat down and read through hundreds of chats and forums before starting my commenting.
Although people on PC can provide their own opinions on a subject, it's really up to you to do the "grunt" work and research, investigate and draw a conclusion. These are my thoughts though.

 

if you're going to buy apartment - you going to have to refurbish, add values, comestic reno, add bedroom/bathroom or something. i was looking at this apartment in this building as i actually held the record for highest sale in the building for apartment (which was in 2009/2010) which was basically beaten @DrunkSailor if you want to play the apartment game - this is stuff that can still make some level of coin compared to 1 bedders in like st kilda or footscray or the likes. @James Baker - would do this instead rather than H&L - airbnb generates lots too if it doesn't work out. From 530K to sold price 827K. not sure how much the reno cost but doesn't look super extensive.

42/88 Southbank Boulevard, Southbank, Vic 3006 - Property Details

 

It might help to know which city the OP is talking about.

$500k will buy a house in the inner-city Adelaide, Hobart, Newcastle, Wollongong etc.

 

Excluding your example, what I'm thinking is that if this is what the apartment sector looks like at the peak of the boom what is it going to look like during a downturn?

I've enquired about some ads online and the agent said "I've actually got 6 apartments for sale in that building, I just use one ad to save money".

 

My advice
1 buy what you can afford
2 buy something that returns 30pc plus of the net rental (if you cannot change the retuRn easily)
3 buy metro market
4 have a diverse portfolio
5 do not expect to pick "a winner" that will surge ahead ..it is not easy
6 calculate your downside eg interest rate rise , vacancies , property becoming obsolete etc and mitigate the risk
7 buy with a long term view as
changing properties as changing is costly
8 consistently buy over a long term ...decades plus decades even when you make mistakes
9 avoid taking drawings instead repay debt and reinvest profits
10 study the building regulations, tenancy laws etc to avoid problems
11 properly manage your investments or engage professionals
12 consider investments everywhere

 

Apartments haven't gone up as much relative to houses. Does that mean they won't fall in price as much relative to houses?

 

Deja vu? The responses you got when you asked the same in 2015 may still be relevant.

VIC - small apartment in good suburb close to city, or bigger house an hour from the city, or regional.

Had one acted then (eg buying a cheap house in Melton or Werribee) one would have a small fortune now.