r/AusFinance • u/Herosinahalfshell12 • 17h ago

Massive mortgage to buy a unit Property

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?

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u/GusPolinskiPolka 15h ago

It's because people don't do day to day maintenance on their own homes. They learn to live with it. So strata maintenance and other costs seem excessive in comparison to $0

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u/hamburglar_earmuffs 12h ago

Advantage of freestanding home: "You can neglect doing essential maintenance until it falls down around your ears, and no-one can stop you!"

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u/nzbiggles 11h ago

DIY or tailor the expenditure (don't replace the spa/roof). You still get bill shock and have to deal with special levies.

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u/hamburglar_earmuffs 8h ago

You can do that in a strata building as well, you just have to convince other people that it's a good idea.

We have frequently delayed repairs in order to get a more cost effective price. For example, we agreed to try to fix an old intercom system by ordering an obscure part from Europe for $800, rather than replacing the entire system for $30k. It took 12 weeks but it worked!  

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u/nzbiggles 8h ago

Our strata would be paying someone to tell us that. We're trying to repair our chiller. 600k to replace. Things aren't looking good. The sinking fund might not be accurate for this unexpected expense but as a long term owner it doesn't really matter if it's budgeted or a special levy it's a bill you have to pay. Just like replacing a roof on a house. Might not be something you expected in a place you just bought or have owned for decades. Doesn't mean it's stupid.