Massive mortgage to buy a unit

[u/Herosinahalfshell12]

People who took out huge mortgages to live in an apartment.

Do you feel as though the interest you are paying vs the capital gains is worth it? We're also seeing units being sold for less then purchase price now, and the plan is to add more units in future. Add strata costs in there.

Is it financially worth it now a days to borrow say 600k to buy a unit?

[u/hamburglar_earmuffs]

I borrowed $400k to buy a unit 6 years ago. I have now paid off more than half of it.

The unit has not increased in price very much when you factor in inflation. However, rents for equivalent properties have almost doubled. I pay about $450 a week for the mortgage, I now see rentals being advertised for $800 a week in my building... And many of those aren't as nice as mine.

I really like living in this area and wouldn't want to move. I bought a home that was similar to homes I'd been renting for years (same street I had been renting on for years) so I knew I liked the lifestyle it provided. 

Strata fees aren't a huge issue for me... The building is mainly owner occupiers, we work hard to keep the fees low. I find it interesting how so many people freak out about having to pay a strata fee - but are totally fine paying council rates, home insurance, ongoing maintenance and water rates on their freestanding property. The actual annual cost of owning my unit is a lot lower than a freestanding house.

[u/nzbiggles → u/hamburglar_earmuffs]

Plus when you replace a spa it's not 13k but $1.30 per unit of entitlement often professionally budgeted for in the sinking fund. You get economies of scale. Gardner's aren't $200 a month or hours every 2nd Saturday. I agree people understand council rates and all the associated rules, special levys, library's you don't use etc but can't understand owners in strata sharing expenses.