In this third instalment of the four part series on What should you buy?, Mike turns his attention to the age old question of house vs unit. He’s joined in this episode by Matt Sharp, Buyers Agent on the Central Coast of New South Wales. Matt’s in-depth knowledge is brought to the fore in this clear and frank discussion about the relative merits of each style of investment.
Using a Ferrari/Toyota metaphor, Mike and Matt talk to the value proposition and yield analysis of investing in stand-alone dwellings over apartments. Taking into account the affordability factor, and looking at the historic returns of each asset class, Matt reveals his three critical elements to consider when determining where to invest.
While there may not be a one size fits all solution, this episode highlights the various scenarios and the reasons behind each investment. Before you take the next step in building your property portfolio, you need to tune in to this conversation
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Mike turns his attention to the age old question of house vs unit. He’s joined in this episode by Matt Sharp, Buyers Agent on the Central Coast of New South Wales. Matt’s in-depth knowledge is brought to the fore in this clear and frank discussion about the relative merits of each style of investment. While there may not be a one size fits all solution, this episode highlights the various scenarios and the reasons behind each investment.
What we cover in this episode
- The jigsaw puzzle of property strategy
- Matt’s three key tips for property investing
- Factors to consider in buying a unit
- The economics of supply & demand
- The importance of market research
- Affordability as a decision tool
- Rent Loss Index
“I don’t think it’s one shoe fits all and unfortunately it’s not a black and white or yes and no answer whether you choose a house or a unit. I think each individual needs to decide what’s going to work best for them and ultimately what’s going to fit best in their strategy” Matt 1:13
“You shouldn’t really have an answer in and of itself in a vacuum right, it’s got to fit your portfolio and it’s got to fit the area, because there might be parts of the country where houses are great and units are terrible, and the converse as well” Mike 1:47
“The actual land component of that particular property accounts for 80% of the uplift or capital growth or the property value so more of your money that is allocated to that land component, the better off you’re going to be in the long run“ Matt 6:54
“There are multiple markets across Australia, there are a whole range of opportunities to buy properties, free standing homes at different levels and it’s something that you really need to look into, do your own research, or obviously leverage on a professional to help you understand that“ Matt 12:34
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