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Townhouse within 10KM V.S house over 20 KM budget the same. Which one you may buy?

Discussion in 'Where to Buy' started by <JC>, 9th Oct, 2015.

  1. <JC>

    <JC> Member

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    Hi All,

    Just wondering about Townhouse within 10 KM CBD V.S House over 20KM budget similar. Which one you would buy?

    That's say townhouse and house condition similar the only difference is the location. Which one you would buy? Just want to find out everyone options?
     
  2. Nemo

    Nemo Well-Known Member

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    Would depend on a few factors.

    - I would look for value for money - how does my purchase stack up against others in the area.

    - Rental yield

    - vacancy rates. No good having a townhouse close in if there are a million currently up for rent.

    Personally, for me, I don't care how far from a cbd it is. I would look at the purchase and ask how am I going to make money from this.
     
  3. Inov8ive

    Inov8ive Well-Known Member

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    Millions of factors to consider, but generally speaking go the townhouse in better position IMO. No matter what you do the one thing you can never change on a property is the location.
     
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  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    Generally prefer the house for 2 reasons

    - More land, and thats the commodity thats rapidly increasing
    - Has scope / ability for future value adding via reno / extension / subdivide
     
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  5. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Depends on the city.
     
  6. Redwood

    Redwood Well-Known Member

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    Depends on where - if its brissy (based on your profile) 20km is H&L territory, so a townhouse would be preffered within 10-15km. In Mel/ Syd you are looking at different prices for townhouses within 10-15 km.... and house will be 1m plus easy....



    Cheers Ivan
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    It goes without saying, even a townhouse sits on land.
     
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  8. D.T.

    D.T. Adelaide Property Manager Business Member

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    A lot less of it, and typically can't do anything with it
     
  9. Be Developer

    Be Developer Property Developer Business Member

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    Go for house if possible!

    Just make sure land is big enough and have no restrictions to add value by way of renovation or development!
     
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  10. The Y-man

    The Y-man Moderator Staff Member

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    Even within Melbourne, it would be interesting to see how people choose :D:

    Scenario 1;
    Same price townhouse in Braybrook (10km from CBD) vs Glen Waverley (20km)

    Scenario 2:
    Same price townhouse in Eaglemont or Balwyn (10km from CBD) vs Truganina (20km)

    The Y-man
     
  11. JDP1

    JDP1 Well-Known Member

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    My 2c is that there are strong similaties between the Brisbane and Melbourne cbd's amd surrounds ex logan, Frankston etc. The behaviour of the 2 cities is similar re real estate - whether it's cbd apartments, townhouses, or outer areas H&L. Ofcourse, on a smaller scale in brisbane but the behaviour of the market is similar.
    Brisbane is about where meblournewas 8-10 years back in terms of maturity ; I'd look to see what happened there back then and try and position yourself to take advantage of similar behavioural patterns in brisbane.
     
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  12. MTR

    MTR Well-Known Member Premium Member

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    I have some concerns over this, totally different beast ie QLD lower wages, somewhat mining dependent, economies operate differently, industries are different.

    There are too many variables so for me I would not presume one will follow the other because its just lagging behind, just my opinion

    MTR:)
     
  13. JDP1

    JDP1 Well-Known Member

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    yup..all true, but not to a significant enough degree to warrant a big difference in behaviour. ie the amount may be different- Brisbane wont have sharp rises like Melbourne has had. The trend will be similar, even though amplitude will be different.
     
  14. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Too many variables to give an answer including: investment strategy, timeframe, which city etc.

    In Sydney I have apartments ~10km from the city.

    In Brisbane, I have a house ~10km from the city (which I will develop townhouses/units on in the future).
     
  15. The Y-man

    The Y-man Moderator Staff Member

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    Actually, let's put some real numbers on this.

    Around the turn of the century, we bought:

    2 BR apartment 7km from CBD bought $210k - today $435k
    3 BR townhouse 20km from CBD $165k - today $600k

    The Y-man
     
    Last edited: 21st Dec, 2015
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  16. ej89

    ej89 Well-Known Member

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    Location:
    Sydney.
    Any comparison with a house a further 10km out?
     
  17. The Y-man

    The Y-man Moderator Staff Member

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    Nah, never bought further than 20km.

    Having said that, perhaps there are members here who could tell us about how their houses have performed in (all 30km radius)
    Chelsea
    Ferntree Gully
    Mooroolbark

    The Y-man