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Ronie

Ronie

Property Expert,

Buying a block of units can be a great investment

1Mo ago 0 Replies 25 Views
Under the right set of circumstances, buying a block of units can be a great investment because it often comes at a good price, and the potential for capital returns and good rental income is high.
But the coronavirus pandemic has placed the entire property market under extraordinary circumstances – so investing in this type of property at this time also requires extraordinary caution.

The pros
However, O’Neill says investing in unit blocks amid all the market uncertainty still has its benefits.
“You can have multiple income streams, which can spread your income risk due to having multiple tenants,” he says. “The chance you have them vacant all at once would be very low.”
O’Neill adds that unit blocks give investors a lot of flexibility when the time to sell has come.

The cons
Blocks of units don’t come cheap, and investors often need a considerable amount of money to pursue this option. O’Neill says lenders often treat three or more units under one title as a commercial loan, which requires a larger deposit.
He adds that “although there can be strata title opportunities, the works required to get them approved can often get very costly.”

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