Would you buy an apartment in Liverpool 2170 3bed 2 bath and 2 garage for $600 or a 4 bedder house in Camden for $700K?
I can afford both but the apartment seems like less work and is closer to the train station.
Your input is much appreciated.
Buy Apartment for $600K in Liverpool 2170 or a House for $700K in Camden?
grabngo on 18/09/2016 - 17:36
Comments
Whichever one is closer to your workplace. :p
I'd choose Camden if you don't mind driving. You get more sense of community when you live in a house compared to apartment living. Plus, you don't need to pay the strata.
As an investment or as a lifestyle choice?
If you're planning to live in it as a home a house is much more of a lifestyle decision than an investment decision. Of course it also forces you to invest your money, by primarily the decision should be made by your lifestyle goals.
But houses lose value, and land gains value.
In the long stretch, the Camden property should do much better than a Liverpool unit.Of course a house/land for an equivalent price in an equivalent suburb is a better investment decision. There are a million other decisions that go into this too (condition of both, they're not in the same suburb, they're not the same price, etc etc).
But all that aside, a house you live in as a home is a lifestyle choice first and an investment choice second. You'll have to be in it for a decade if you don't want to lose money selling it - so if you prefer apartment living or prefer the suburb the apartment is in (for schools or work or closer to family or whatever) then you should make the lifestyle choice - because it's going to impact you every day of your life for the next decade.
The criteria for selecting an investment property is and should be quite different than that for selecting a home.
The house, liverpools reputation is well, lets not go into that here
I live there, I agree it doesn't compare to the North/North West or Eastern suburbs, but it's definitely getting better and I wouldn't live in any other Western surburb.
when I look for cars, I always refrain from neighborhoods like Liverpool, may be it's over-generalization but in all my 20+ experiences of checking cars from those suburbs, I've never once found a genuine seller!
I would apply that rule to most of Western Sydney, especially the Bankstown area. :P
Mt druitt. Help your mortgage and deal on the side
For a similar price a house will always be better unless the suburb the house is in is shit.
The apartment might seem less work but it could cost more money. All the work is done by the strata management which will be paid by you in part.
Lastly, it depends on where you work.
House, land will always appreciate :)
Got my appartment for ~280k 5 years ago in Liverpool, it's now worth ~500k.
not saying it won't appreciate but we are in an artificially inflated property market right now imho so what was true for you 5yrs back may not hold true for the next five years! In the longer run, house+land will always appreciate more compared to apartments, at least that's what I understand
Land is scarce (supply is less than demand) so that's why its value goes up. And when you own the land it is yours without any encumberances. (usually) And if you really hated the house for instance - you could demolish and rebuild.
Many units can be built on the same parcel of land so the only way to increase the value is with the unit (building) itself. The supply of units is very high with so many new ones being built - so demand is not pushing up the price. Your older unit will still be competing with just newly built ones - and people will tend to go for a newly built unit.
The silent cost with a unit are the Strata Fees. The more mod cons you have - a lift, a pool, barbecue areas - the higher it will be.
Buying a house gives you ownership of land, buying a unit/apartment gives you space between the walls, but no ownership of anything. Over the last 20 years units have outperformed houses by a large margin, but history shows when there is a property crash/downturn units/apartments are hit the hardest.
So it comes down to location, which area do you prefer to live in, thats what i would base my decision on.
but no ownership of anything
Incorrect.
Don't forget to take into account ongoing strata fees. They're a killer!
^This
Strata levies and the hassle of having to deal with the Strata to ensure proper maintenance/repairs are done, should be a factor in your decision.
If you can afford either one of those property, I'd go with the house.
Apartment is good if it is close to amenities and the suburb vacancy is low (under 2%) and the strata fee is not expensive.
IMO, Camden is nicer than Liverpool.
Liverpool has infrastructure… and NBN
Its crosspoint suburb as well.
Its got the potential to be a mini Parramatta for the Southwest… once the Government start focusing there and not Parramatta. Being a feed by suburbs such as Camden.
Ultimately though if you work in the City, better to rely on rail than the stress of driving unless you already do a lot of driving as it is.
Based on those figures I assume your looking to invest in the SKYHAUS building in Liverpool? Put it this way, economists are predicting and its already occurring (approval of new airport etc.) that the SOUTH WEST corridor (Liverpool all the way down to Appin) will become the next PARRAMATTA in 10-15 yrs.
Things you'd have to consider is if the apartment lifestyle is what suits you in say 5 yrs time?
Are you planning to start a family? and is an apartment suitable?
Strata fees may fluctuate exponentially.
Would you considered building a brand new home out around Camden area (great opportunity to get gov. grant)?
A lot of factors to consider as well as the Pros and Cons of a House VS Apartment.
I hope to be in the same position as yourself in a year or two, I know it is tough for those Gen Y people without any financial support. Only time will tell how the housing market pans out.I'm prob biased, but would always put house in front of apartment due to capital gains potential - ie. land will always be worth more than no land.
what type of lifestyle do you prefer and what are your future goals re life (family etc)