Investing in property - Houses versus apartments
When it comes to property investment, there are a lot of things to take into consideration before sealing the deal and taking the plunge. However, one of the first things to consider, especially if this is your first time buying an investment property, is the following - which is better for investment, a house or an apartment?
Just like everything to do with property, there are a number of different factors to take into consideration before making your choice. One of the major things to consider, especially for investment property, is the type of returns you'd like to earn.
For example, if you're purchasing an investment property in a city hub, it could be a good idea to consider looking into apartments. The reason for this is that if you choose a nice apartment in the middle of a metropolitan city, the chances of it being empty for an extended period of time are slim.
This means that you will be able to secure a steady stream of rental income from the property with relative ease. Furthermore, apartment units are far easier to provide maintenance for than houses, which could be a plus for busy professionals investing in property.
However, if you were hoping to make larger, long-term returns, houses are generally more affected by capital growth. This means that as time goes by and the value of your property increases, the difference between what you paid originally and its current value is profit.
Houses can also have their value increased easier than apartments. If you purchase a house that is a little bit older, touching the home up could help to add instant value. However, houses also require far more maintenance and overall upkeep than apartments, so this could be a factor to remember when investigating property investments.
The types of tenants you will attract can also influence your decision. Keep in mind that houses in the suburbs are more likely to attract families, which could mean small children or pets being introduced to the property. Apartments in the city, on the other hand, are more likely to attract professionals or working couples without children.
Purchasing an investment property is a huge financial undertaking, but taking the time to research upcoming property hotspots and get the right kind of advice from a real estate professional could put you on the right track to achieving some fantastic returns.