Practically vs emotional

Discussion in 'The Buying & Selling Process' started by DrunkSailor, 16th Nov, 2017.

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  1. DrunkSailor

    DrunkSailor Well-Known Member

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    Melbourne
    I need some guidance as I've just discovered that an apartment which I really really like has two major drawbacks.

    • It doesn't have a car space and the nearest parking is 20 metres away but those areas aren't 100% riliable. I'll always have and use a car on a daily basis so parking is very important
    • The management fees are double the average fees of similar apartments.
    What I really like about this apartment is that it has separate dining area and separate living room. Also it's really cheap and run down which means I can renovate it to any style I like.

    Now I have the choice between this apartment and another one up the road which has plenty of parking and half the management fees. This apartment is 100% practical for my needs but it's not "special" like this other apartment. However it is 20% more expensive and In the same condition.

    Which is the smarter choice?
     
  2. wylie

    wylie Moderator Staff Member

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    I'd always go with the parking space and less management fees, all other things being equal.

    The problems you already see will not go away and you'll have the same issues when it is time to sell.
     
  3. private_number

    private_number Well-Known Member

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    Go with the other one up the road.

    You obviously have a criteria you want met, and having an accessible car park sits high on this list.
     
  4. Marg4000

    Marg4000 Well-Known Member

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    Go with the car park.
    I've heard of that in Sydney a car park adds $100K+ to the value of an apartment.
    Marg
     
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  5. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    Carpark and lower strata fees. You can always offer less than asking price, but I'd say the car parking and lower strata makes the property worth more than the other.
     
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  6. Lil Skater

    Lil Skater Well-Known Member Business Member

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    I'd go car space with lower management fees.

    If you're set on the other though, look into why the management fees are so high. Is it because they're going to do substantial improvements to the block that will add value to your property? Or is it just an expensive OC that does nothing?

    If it's the first one, then it might be worth looking into further - but a carspace is almost always valuable for many people.
     
  7. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    Not being able to park your car reliably will get old VERY quickly. It's annoying every single time, and choosing to potentially deal with that every day is madness!
     
  8. hammer

    hammer Well-Known Member

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    Higher strata fees are a compounding problem. Do the maths on holding the property over 10 or 20 years.

    All those extra $$ per quarter really adds up, especially if it's a PPOR.