One townhouse or 2 units/apartments?

Discussion in 'What to buy' started by Ouga, 15th Jan, 2020.

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  1. Ouga

    Ouga Well-Known Member

    Joined:
    18th Jun, 2015
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    "Trying is the first step towards failure" Homer
    Hi guys,

    Curious what you would choose between one townhouse and 2 units/apartments for investments?
    This is looking at Sydney, long term buy & hold. Gentrifying area, old houses going down, new duplexes, townhouses, apartments popping up.
    Of course, the townhouse has more land component than the 2 units combined, so there is that going for it when it comes to long term capital growth: land scarcity factor.
    The units will achieve a greater rental return albeit with higher strata fees and more supply coming long term. On the other hand, newer apartments with higher price tags might push the price of older stock up too.
    And while a townhouse should experience higher capital growth over the long term compared to an apartment, I am not sure whether 2 apartments might beat that - I think it might actually.

    Budget is kinda similar, although a bit higher if going for the 2 units.

    Interested in hearing your thoughts.
     
  2. Trainee

    Trainee Well-Known Member

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    Location:
    Australia
    Get the old house.

    put some numbers. How much is the old house, townhouse and units?
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    red 6 pack ?

    ta
    rolf
     

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