Post to Facebook on 14/10/2019 10:11 PM
Commenting on “Melbourne high-rise apartment prices lag houses by 50 per cent in some suburbs”
I continue to warn readers and investors NOT to invest in apartments, because it has no land. Investing in apartments is investing in air space, and one cannot build on air without firm ground.
One will be lucky to make a breakeven, let alone make a capital gain in a long run. While initial rental yield may seem attractive, and generate a good cash flow, the final overall outcome is nowhere close to that owning a landed property.
Many new migrants from Asian countries bring along the mentality that apartments can make a killing in years to come, but they do not realise this is a different country with different culture and life style, not to mention this is a vast country with sparse population.
Should you decide to invest in apartments, consider investing in service apartments. The yield may be higher, but then the capital gain is just as poor as normal apartments in the long run.
What is worse than investing in an existing apartment is buying one off-the-plan. Not being able to see the finished product, and the unpredictable final settlement definitely give me many sleepless nights.
Thank you for reading.
Commenting on “Melbourne high-rise apartment prices lag houses by 50 per cent in some suburbs”
I continue to warn readers and investors NOT to invest in apartments, because it has no land. Investing in apartments is investing in air space, and one cannot build on air without firm ground.
One will be lucky to make a breakeven, let alone make a capital gain in a long run. While initial rental yield may seem attractive, and generate a good cash flow, the final overall outcome is nowhere close to that owning a landed property.
Many new migrants from Asian countries bring along the mentality that apartments can make a killing in years to come, but they do not realise this is a different country with different culture and life style, not to mention this is a vast country with sparse population.
Should you decide to invest in apartments, consider investing in service apartments. The yield may be higher, but then the capital gain is just as poor as normal apartments in the long run.
What is worse than investing in an existing apartment is buying one off-the-plan. Not being able to see the finished product, and the unpredictable final settlement definitely give me many sleepless nights.
Thank you for reading.
