Hi all,

The broken record is “Land goes up in value, buildings depreciate”.
This means for capital growth ‘generally’, house and land will out perform apartments hands down over time.

We been warning investors about Brisbane for some time and as you can read from Michael Yardney’s post, many banks are limiting how much they help investors damage their financial future. https://propertyupdate.com.au/bank-blacklists-100-brisbane-suburbs/?inf_contact_key=17d229ea564d433a42b51c81519f4911bc02594d9bf6cd353692e4d33471c0bb

While Australians (mostly new Australians) are embracing apartment living these days more than ever, the fact remains they still are not a great investment.

1. Almost no land – it’s land that goes up in value
2. Ever rising body corporate – usually not factored in when citing yields
3. Less depreciation deduction than houses, especially f&f
4. Sinking fund costs grow and you have almost no control on how spent
5. Minimal control over your asset
6. You can’t add a granny flat for extra income

Getting the picture?

Brisbane and to a lesser degree for now, Gold Coast apartments are in glut. Melbourne has a big problem and Sydney has over done it again so watch out for some negative stories there over the next 2 years.

House and Land in key growth suburbs where future demand is secured – safe as houses!
Mike Harvey
Principal

Mike Harvey
Principal Investment Consultant and Author
P – 
0400 098 755
E –  mike@onyourside.consulting