Looking for: Brisbane - Block of units

Hey guys, thought I'd throw the fishing line out and see if any of you has, or knows someone who has a block of units they'd sell for circa $2,000,000 in Brisbane?

Looking to get the whole block, willing to pay all cash.

 

I guess this won't be possible in Brisbane you will have to look in the surrounding .... unless you meant the greater brisbane area

 

Yes greater Brisbane

 

2 mill would buy within the BCC footprint ,but that would only be a 6--8 pack lmr site on above 812 sqm's..
We looked at one block of 4 ,all brick in Moorooka that was just under 1-2 mill and that sat on the market for a while that a mate was interested in ,but they did not take the offer..

The link below sometimes every now and again depending how hard the unit market is hit around Moorooka may have what you may be looking for,and very upfront people to deal with it would be worth the phonecall..imho..

Matthews - Real Estate

 

Thanks willair! I'll drop them a line today and see what they've got. Completely happy with a 4-pack.

 

What makes them hard to finance Rolf?

 

Because bank wants to know they can sell something off if you run into finance trouble. If its multiple units on one title, that has a fairly narrow target market (in terms of both financially and demographically). Not as saleable as a 3br brick house.

 

So buy them as a whole, get them strata'd and profit?

 

I guess it is like that in Moorooka,and looking from the finance angle it may be hard for some investors but there is several like the link below on the market..imho..
Matthews - Real Estate

Property ID: 17851382

 

good approach but rare to find, most are unit blocks are priced as if they were sold individually
eg 2 mil would get you an 8 apartment site which individually are worth $250k

Might be out of your comfort zone but have you considered sourcing your own site and constructing (yes might take 2 yrs + but could be quiet profitable in itself)

 

Sure, but banks don't think ahead like that.

 

Don't mind initially, buying all cash.

Thanks for the suggestion but not looking to build. Timewise too challenging. Yeah, will look at the numbers to see if OOT's are being priced the same as Strata in DD phase, cheers for that.

 

I looked at this once upon a time, what I found was that most didn't have much better yield than just buying a Dual Occ property so it's not worth the risk, resale market is smaller than just buying a house with a granny flat, generally they are just priced as if they are individual units but all together. Also, as @Rolf Latham mentioned vast majority of those older style blocks can't be strata titled either. The real play with those is if you can find them on a site that complies (or could eventually comply) for a modern apartment block. Knock down a 6 pack and build 24x for example.

 

Right, but your question was about what makes them harder to finance