One bedroom units-good investment?

Discussion in 'What to buy' started by Amber83, 21st Oct, 2017.

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  1. Amber83

    Amber83 Well-Known Member

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    Victoria
    thanks! the problem is getting finance lol. I also worry how well they would sell in future due to difficulty getting banks to finance them? I went to five inspections on the weekend and there was almost no one else there! that has to mean something
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    Yes - it has been the big game changer.

    Interested to hear regarding the opens. Really happy we sold our CBD 1BR a year ago (it was also sub 50sqm) for a good price.

    What it means for you is negotiate hard if you are dead set on buying.

    Can you get enough together for a 2BR? Probably the better strategy if you can afford.

    The Y-man
     
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  3. Depreciator

    Depreciator Well-Known Member

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    I have two one bedders in 70s buildings in a good location in Sydney. I like them. Very uncomplicated buildings so low strata fees. I put a new kitchen in each flat and gave them a paint etc so they present well. They always rent out and growth has been good - but in Sydney, everything has gone up.
    Re: The water bills. The quarterly bill for both flats in separate parts of the suburb is identical - $275 per quarter. So they are not even taking a meter reading for the building.
    Scott
     
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  4. Amber83

    Amber83 Well-Known Member

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    Victoria
    I would but in the areas
    I'm looking in for good quality stuff it's gonna cost me $550-600k for a two bedroom and the banks won't loan me what I need for that.
     
  5. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Perth
    First property purchase back in 2000 was a 1 bedder in what would be considered a decent suburb for 52k using FHOG :)

    FF to 2006 I decided to cash in and sold for 160k and 6 months latter was worth 200k and still around that price today I believe.

    I remember when I first moved in a neighbor who was from Sydney said that equivalent properties where 200k+so her prophecy came to pass.

    If you are planning to hold for the long term 10+ years you may well see another cycle and possibly 2-3 if its a 20 year time frame.

    Often you will see complexes with 16 or so units on a corner block with a large parcel of land. With older apartments its important to consider land/build ratio as its the land that increase in value over time.
     
  6. Tony Rindfleisch

    Tony Rindfleisch New Member

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    1st Nov, 2017
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    Melbourne
    Your plan is a good one but not all apartments are equal. There are some great streets and some poor areas in every suburb, so choosing the right suburb is only part of the equation. Your long-term goal is what you need to keep in mind.