Units only price point some people can get into. Problems with units are also not enough car spaces. Not many units are three bedrooms (17 per cent) - these can do well. I got one with three bedroom on 280 square metres, which is the block size of many houses in innner suburb in Perth I bought for 400000 recently. Strata.covers your building insurance. Also mine covers all gas and water, house repair costs could be huge. 4 units for 2 million net 5.5 per cent, 1 house for 2million nets 3.5 per cent. 40000 pa difference.
There are houses across the nation at $400k in regional Qld’s that are performing better than units in Perth. Also the net far more returns. Also any net differences are also tax deductible depending on the scenario (speak to your accountant here). In summary the capital growth rates of houses in well selected areas are still likely to outperform.
Thanks so much Arjun! You've articulated this extremely well. Would love to hear trends surrounding duplexes and townhouses if they're worth diving into. Thanks!
I’ve always believed that houses are better than units too Arjun, but are we entering a new paradigm? Historically, houses have always been within reach of FHB’s across our capital cities. That’s currently not the case. Reduced borrowing capacities are pushing investors & owner occs toward affordability. Also, a lot of established apartments are trading way below replacement cost. BTW, I’m talking smaller boutique complexes, not high density. I guess time will tell, if this time is different
Hi @jimm3379, Units may be performing better than before, but we don’t think they’ll become a better-performing asset than houses. It’s true that affordability has increased the demand for units, and in recent years units’ value growth has benefited from the slow or reverse growth in previous years. And yes, in some low-mid density areas where unit supply is limited, unit growth can be good. However, if we’re talking about units as an investment asset, the likelihood for it to outperform houses is low, as they’ll always be more prone to oversupply. In summary, there’s a chance they outperform in the short term but if they return back to long-term averages they will then underperform again.
Thank you soo much! We haven’t studied Darwin deeply, considering its volatile past it hasn’t been a core focus. We will check this out and make a video on it in 2024
Darwin is hard to study - demographics are unpredictable - Immigration is a big factor - not much choice for seasons - a lot of land available restricting the rental or seller pressure - a lot of abandoned units in town - square KM area is vast for a population of this size - a lot dependancy on Govt money - I can continue but in the end its very unpredictable
Thanks for your comment, @paulinezheng2224! If you need any advice on navigating the market or selecting the right property, feel free to reach out! We're here to help.
Units only price point some people can get into. Problems with units are also not enough car spaces. Not many units are three bedrooms (17 per cent) - these can do well. I got one with three bedroom on 280 square metres, which is the block size of many houses in innner suburb in Perth I bought for 400000 recently. Strata.covers your building insurance. Also mine covers all gas and water, house repair costs could be huge. 4 units for 2 million net 5.5 per cent, 1 house for 2million nets 3.5 per cent. 40000 pa difference.
There are houses across the nation at $400k in regional Qld’s that are performing better than units in Perth. Also the net far more returns. Also any net differences are also tax deductible depending on the scenario (speak to your accountant here).
In summary the capital growth rates of houses in well selected areas are still likely to outperform.
Thanks so much Arjun!
You've articulated this extremely well.
Would love to hear trends surrounding duplexes and townhouses if they're worth diving into.
Thanks!
Appreciate it! I’ll make a note of this for a future episode
I’ve always believed that houses are better than units too Arjun, but are we entering a new paradigm?
Historically, houses have always been within reach of FHB’s across our capital cities. That’s currently not the case. Reduced borrowing capacities are pushing investors & owner occs toward affordability.
Also, a lot of established apartments are trading way below replacement cost. BTW, I’m talking smaller boutique complexes, not high density.
I guess time will tell, if this time is different
Hi @jimm3379, Units may be performing better than before, but we don’t think they’ll become a better-performing asset than houses. It’s true that affordability has increased the demand for units, and in recent years units’ value growth has benefited from the slow or reverse growth in previous years. And yes, in some low-mid density areas where unit supply is limited, unit growth can be good. However, if we’re talking about units as an investment asset, the likelihood for it to outperform houses is low, as they’ll always be more prone to oversupply. In summary, there’s a chance they outperform in the short term but if they return back to long-term averages they will then underperform again.
@@investorkit 🙏
Thanks Arjun, very enlightening.
Glad you enjoyed it!
You make so much sense
Thank You 🙏
Very interested to know why Darwin is such an exception to the rule ???
Thank you soo much! We haven’t studied Darwin deeply, considering its volatile past it hasn’t been a core focus. We will check this out and make a video on it in 2024
@@investorkit Thank You 🙏
I look forward to that Video.
Keep up the great Work 🙏
Darwin is hard to study - demographics are unpredictable - Immigration is a big factor - not much choice for seasons - a lot of land available restricting the rental or seller pressure - a lot of abandoned units in town - square KM area is vast for a population of this size - a lot dependancy on Govt money - I can continue but in the end its very unpredictable
The properties are too expensive, first home buye can only offord unit
Thanks for your comment, @paulinezheng2224! If you need any advice on navigating the market or selecting the right property, feel free to reach out! We're here to help.
Is Melbourne still worth investing?
Hi @paulinezheng2224, Thanks for your comment. If you’d like tailored advice or more specific insights, feel free to reach out! We're here to help.