Buying a unit

by Aaon
(newcastle nsw)

Hi my name is Aaron,

Is a 2 bedroom unit a good investment ?? what are the perks and flaws oppose to a house. i would love to buy a unit i am looking at which is next to the beach but is the same price as a 3 bedroom house which is on the outskirts of town.

kind regards, Aaron

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Oct 15, 2015
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May 07, 2012
A unit near the beach, or a house?
by: Elizabeth Elwell-Cook

Dear Aaron,

Generally speaking, in Australia at the moment (May 2012) units and their rents are going up faster than houses.

From what I've been seeing, units near the beach have been a bit slower than they were to move, but if you do your research, this can be a good thing (ie you may be getting a bargain if you plan to hang on to it for a few years)

Remember to check sites like RP Data for info on what is going on in your area, as well as getting some of the host of property investing magazines which list rent returns and other factors for every postcode in Australia.

But, depending on your area of course, a unit near the beach might net you good rent returns, either as a general rental, or as a holiday let (beware of vacancy rates for both styles of rental!).

Do your due diligence, and your sums: check the sites. Check the agency windows. How does the rent return stack up against the purchase price for a house on the fringes, or a unit near the beach? What do people look for most in your area? What is the vacancy rate for a regular rental of a two or three-bedroom property?

Remember to take into account factors like strata fees and what the body corporate is like. Ask questions of residents in other units if you have to, to get answers about how the property is maintained under the body corporate and strata. While the general thing is that you only have to worry about internal maintenance on a unit, and you'll have to do your own on both interior and exterior of a house, how does this work for you and your situation?

You'll have to check these things for yourself and your area and your circumstances before you make a decision, but good on you for seeking more information before you dive in! And best of success to you, too!

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