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McMansion

Discussion in 'General Property Chat' started by Danmicb, 25th Aug, 2016.

  1. Danmicb

    Danmicb Active Member

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    As a Medium/long term investment (if they are still standing long term ), this article may have some truth.

    Why McMansions are a bad investment

    (Stop the webpage before it loads and you'll be able to read it. Unless you have a subscription)
     
  2. Tim86

    Tim86 Well-Known Member

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    Houses depreciate and land appreciates. So a property that has a value tied more to the structure than the land will fair worse than a property that is more balanced.

    Plus its a premium part of the market which suffers more from being outdated with aging stock. Lower end of the market isnt as bothered by houses that need a reno. However the higher end market doesnt want to pay a premium for old mc mansion stock that requires a reno.
     
  3. Ed Barton

    Ed Barton Well-Known Member

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    NO. Houses appreciate slower than land.
     
  4. MTR

    MTR Well-Known Member Premium Member

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    This article is about US property market, not Aussie property market a totally different beast.

    Land can be purchased very cheap, dependent on where/location, its all in the build.

    What I see is average size homes in US are around 2200 sq ft.

    Also I would take this article with a grain of salt, USA property market has recovered, crashed in 2007, started to rise around 2011 and has continued to build momentum. Practically every market is hot, regardless what the product is

    MTR
     
  5. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Heard a great tip whilst listening / watching "The Property Couch" via Damien Collins.

    Look for a 70/30 land/build ratio weather strata or green title.

    Makes sense, as the land increases in value over time and buildings depreciate.
     
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  6. Inov8ive

    Inov8ive Well-Known Member

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    Can you please explain this? How can a house appreciate at all?
     
  7. Biz

    Biz Well-Known Member

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    Yep that's the sweet spot. Any less and it needs to be a very good yield to justify it.
     
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  8. Ed Barton

    Ed Barton Well-Known Member

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    Inflation. It's VERY unlikely to appreciate in real terms. A house without the land in 73 maybe worth $10k, the same house without land today would be worth $100k.
     
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  9. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    I like to think my house will appreciate in value over time as much as my land #justtoocute #theydontmakethemliketheyusedtoo #sorry ifitsatadannoying
    Screenshot_2016-07-10-22-39-32.png
     
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  10. Pixie

    Pixie Active Member

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    Hi gockie

    I went to Epping to grab a bite at a Korean restaurant and walked by the real estate office.

    One thing grabbed my attention was a picture of a property but couldn't remember where I have seen it. It took me a while during dinner to RMB it was in this forum where I saw the pic of your property..

    Love the frontage :)
    Haha feels like a stalker at times haha
     
  11. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Ohhh... so I guess they still have our home in their window.... hmmmm.... thanks for the heads up! :)
     
  12. Dan Donoghue

    Dan Donoghue Well-Known Member

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    I will never get bored of seeing photos of your place Gockie, such a beautiful home :).
     
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  13. MTR

    MTR Well-Known Member Premium Member

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    @Gockie
    Silly thing is that period homes seem to fetch higher prices unrenovated than renovated, buyers a pay a premium for untouched seen this in my area which is predominately all period homes circa 1900 and also see this in Melbourne inner city.

    MTR:)