Decrease in Condo Capex vs STR (Australia)

[Liam Martin Ruane]

Hi all, 

Hope this finds you all well.

Just wanting to get some opinions on Capex in condos vs STR. I'm looking at a bunch of condos in Melbourne, Australia and they typically have HOA which is in charge of roof capex and any general building capex outside of anything the is directly located in my prospective unit. I'm also looking right in the centre of the city where the units are quite small so there is less area that could potentially require capex.

Another nuance is that in Australia, washing machine, dryer and fridge are something that the tenant handles, so nothing would go towards this for capex.

I know it's good to be conservative but for these reasons, I'm thinking that my capex allowance could potentially be decreased from 10% to perhaps 5%.

Would be very interested in what people think about this as I am hesitant in lowering my allowance for capex.

Cheers,

Liam