- Dual Living - Includes Duplexes, Dual Occupancy, and Dual Keys
- House and Land
- Townhouses and Terrace Houses
- Apartments and Units
Each of these styles has a typical base price and a commonly found location. So, as a quick estimate, we can ascertain what type of each property would cost for each of the areas. And that is where the choices begin.
$550,000 would purchase a highly cashflow positive Dual Occupancy showing high returns on the outskirts of a CBD, but will typically show a lower capital growth due to the location. As it is cashflow positive, it can help fund other negatively geared investments that are in capital growth areas but without the return.
$550,000 would purchase a House and Land in the outer suburbs of a CBD, or, occasionally, in an in-fill area of an established suburb. Rent returns would typically make these purchases cashflow negative/neutral, but with a higher capital growth than a dual living.
A townhouse close to a CBD could be bought for $550,000, showing good capital growth, but average rental returns. Holding costs are typically more expensive for these types of properties as they tend to be strata titled. These costs could be up to $100 per week.
Finally, Apartments. These are the staple fare of inner-city CBD living. Here prices depend not only on how many bedrooms, but also on the views, floor level, and amenities. Holding costs for Apartments are higher due to the facilities such as pools and gymnasiums, and even the elevators. Short-term letting / Airbnb can increase rent returns, however only if permitted by the Body Corporate, and this is a risky strategy. Typically the resale prices of Apartments are the first to suffer in any housing down-turn.
Below we have broken the main investment property categories into four sections, each with their page with further, more in-depth information.