Is it worth paying extra $10,000 for an extra 20sqm space in a unit/apartment

Discussion in 'Investment Strategy' started by hozi, 26th Oct, 2016.

Join Australia's most dynamic and respected property investment community
Tags:
  1. hozi

    hozi Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    51
    Location:
    Sydney
    Hi

    Your thoughts on
    Is it worth paying extra $10,000 for an extra 20sqm space in a unit for investing purpose

    TIA
     
    hozi, 26th Oct, 2016
    #1
  2. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    740
    Location:
    Bermagui NSW
    If you work on a conservative sqm rate this does appear to be very good value. will feel a lot bigger in a unit also.
     
    Mick Butterfield, 26th Oct, 2016
    #2
  3. serendip

    serendip Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    146
    Location:
    Sydney
    10K for 20m2 seems like a bargain to me. I would think it would also help resale value.
     
    serendip, 26th Oct, 2016
    #3
  4. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    14,015
    Location:
    Brisbane
    I say yes.
     
    wylie, 26th Oct, 2016
    #4
  5. House

    House Well-Known Member

    Joined:
    13th Sep, 2015
    Posts:
    929
    Location:
    Sydney
    In general I'd say definitely yes but obviously depends on factors that may affect the value. If that extra space gets you a view of the rubbish tip or is right above a busy street it may not be as good of a deal.

    What are your comps based on?
     
    House, 26th Oct, 2016
    #5
  6. See Change

    See Change Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,149
    Location:
    Sydney
    Yes

    Cliff
     
    See Change, 26th Oct, 2016
    #6
    Scott No Mates likes this.
  7. hozi

    hozi Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    51
    Location:
    Sydney
    It's a corner block with usual residential views. and unit is at back of block
     
    hozi, 26th Oct, 2016
    #7
  8. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

    Joined:
    31st May, 2016
    Posts:
    2,738
    Location:
    Australia
    That's like two additional good sized bedrooms. My experience in the initial rising days for the Sydney boom is thay you'd typically pay 20k to 30k per extra bedroom in Western Sydney
     
    Property Twins, 26th Oct, 2016
    #8
    Tony Fleming and Scott No Mates like this.
  9. Phantom

    Phantom Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    2,054
    Location:
    Sydney
    Keep in mind also that most lenders have size restrictions on units. They won't lend you the funds if it falls under their minimum size guidelines. Typically about 40sqm. Make sure you don't get caught out here.
     
    Phantom, 26th Oct, 2016
    #9
  10. JDP1

    JDP1 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    4,244
    Location:
    Brisbane
    Yes. This is a bargain I would think.
     
    JDP1, 26th Oct, 2016
    #10
  11. Tony Fleming

    Tony Fleming Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    717
    Location:
    Sydney
    Yeah it's worth it. Much easier to sell a larger unit than a shoebox.
     
    Tony Fleming, 26th Oct, 2016
    #11
  12. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,525
    Location:
    Melbourne
    Hey if it's 20 sqm extra in a 30 sqm apartment heck yeah!

    The Y-man
     
    The Y-man, 26th Oct, 2016
    #12
  13. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,357
    Location:
    Perth
    Sounds marvellous to me.
    Is the extra space useful though? It's a bargain if the extra area is in such a way that you can create an additional bedroom or study. If it's just means 5 times as much hallway as another unit due to an obscure design/shape of the apartment then I might say no.
     
    Westminster, 26th Oct, 2016
    #13
    Perthguy, wylie and Marg4000 like this.
  14. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,421
    Location:
    Qld
    Definitely yes - so long as, as said, the space is utilised advantageously.
    Marg
     
    Marg4000, 26th Oct, 2016
    #14
  15. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    14,015
    Location:
    Brisbane
    I agree that if the space gives you a larger living room, or the ability to add a study nook it is a yes. If it is just (as others have said) extra hallways, or larger but badly designed that is a different matter.
     
    wylie, 26th Oct, 2016
    #15
    Perthguy likes this.