McMansion

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)

 

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Plus its a premium part of the market which suffers more from being outdated with aging stock.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.

 

NO. Houses appreciate slower than land.

 

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

 

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.

 

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

 

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

 

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.

 

I like to think my house will appreciate in value over time as much as my land #justtoocute #theydontmakethemliketheyusedtoo #sorry ifitsatadannoying

 

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

 

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

 

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

 

@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