Simple question - would you prefer good location (unit) or ok location (house)?

Just want to see what your opinions are. Generally, everyone knows that location is king. However, lets say if you are in a situation where:

1. There is a unit that has a very good and strategic location (closer to CBD, schools, public transport, shopping centres etc)
2. There is a house that has ok location (further from CBD, schools, etc.)

Which do you prefer?

 

House. You could add this query as a poll.

 

Some of our best capital gains came from units, complexes in good locations and units in a prime position within the complex.

 

I don't think there's a generic answer to this. As with Marg4000, some of my best growth has been from well bought and placed units. I've also had greath growth from houses.

You need to weigh up each purchase on its own merits and use a checklist to decide on an area's drivers and then select the best type of dwelling (read: most in demand) for that given area. Then, and only then, do you look at the budget....if it's too much, move on to the next area. One of the biggest mistakes people make is trying to fit their budget into an area they can't afford. They then buy the wrong type of property, often in poor condition and never see growth. Or they buy too nice a property in the wrong area because they perceived it as good value relative to either other properties they own or where they live, and end up overpaying.

Don't worry about the type of dwelling first, worry about the economic macros and micros and go from there.

Andrew

 

Location does 80% of the heavy lifting. No idea where I heard that one! Like a jingle I can’t get out of my head.

 

6 pack brick unit v new house where you can touch the neighbours?
highrise unit v old weatherboard?

Not that simple.

 

Location more important, subject to the asset selection itself, as noted in Trainee's comment above.

 

Property Couch podcast boys have that one.

 

Also depends on location you are considering (eg- unit living is more prevalent in Sydney and Melbourne) and supply and demand metrics for a local market for a particular product type. It is definitely not a simple answer of one vs the other

 

Units can be a great choice as well in busier areas, you can get some distance from road noise. And depending on the setup the driveway can be added safe space for kids to play over and above the quoted land area.

 

Easy. Rent the unit. House I would buy anywhere the numbers crunch to make me money.

 

Would be great to hear from an experienced global investor what numbers you would need to see before you pull the trigger on a house?

And perhaps also at what point you regard a unit being worthwhile. I.e. would you lean towards a unit if it yields 5% but house 2.5%?

Cheers