Is a unit a better investment than house and land?
Is a unit a better investment than house and land, one of the most common questions we are asked by property investors? It’s amazing the number of Real estate homilies that are so completely inaccurate yet so many people are prepared to believe them.
(Please contact us at info@limepropertysolutions.com.au for further information or the chance to discuss this and other issues in the comfort of your own home.Location will make the difference
Location will make the difference, not building type
One of the common ones is that we should only buy house and land, the old saying being that “land appreciates but buildings depreciate”. I wonder how you would get on trying to convince Hollywood star Russell Crowe of this this one. Russell has opened the doors of his Finger Wharf apartment in Woolloomooloo to select off-market buyers ahead of an official listing early next year.
His price expectations on the landmark harbour front apartment are $30 million, which would break the current national apartment record of $25 million…… And the land content of this apartment is exactly zero as it is built on a wharf above water. The original selling price when bought off the plan in 1998 was $9.8 million. Crowe made the purchase in 2003 setting a Sydney record of $14.35 million. Current neighbours include billionaire Lang Walker and broadcaster John Laws.
Read more: https://goo.gl/G1B97k
If we take the old adage to the extreme, we live on the world’s largest island and over 95% of us live on the coast, mostly in one of the capital cities. You can buy 400 or 500 square kilometres of Australian land for very little and according to the old adage, “land appreciates, buildings depreciate” you might do a lot better than the $16 million Mr Crowe is likely to make on the sale of his unit with no land content! Then again, maybe the land you buy will be as worthless in 20 years time as it was when you bought it!
It still boils down to another old real estate adage, “Location, Location, Location!” So is a unit a better investment than house and land? It certainly can be, it is all totally dependent on the location of the unit and the location of the land, both can be excellent investments or poor investments depending on location.
If you want to know more about possible excellent unit or house and land developments in good locations contact: info@limepropertysolutions.com.au.
