Should you invest in a house or apartment?

If you are thinking of investing then you typically would have some common investment questions regarding your best step towards having a property portfolio. So what is better? House or Apartment?

Date:

11-May-2018

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Author:

Jane Mortimer

Should you invest in a house or apartment?

If you are thinking of investing then you typically would have some common investment questions regarding your best step towards having a property portfolio. So what is better? House or Apartment?

When you start your investment searching there are a few things that you will have to consider to determine what is best for you;

• Location - often this is one large portion of your decision as suburbs vary in price, it is often beneficial to do your research on some of the locations that offer lower purchase prices but still get you good rental income.

• Affordability – hand in hand with the location you need to set a budget and try to search for the most affordable property on the market. Once you know what properties are achievable, check that they are going to be in a good and developing area to secure your properties growth.

• Ongoing costs – Things like; maintenance, body corporate fees, and/or rates to name a few. These costs are always a part of investing and unavoidable, but by doing your research and finding locations that have lower rates/body corporate or buying property with minimal maintenance like a new property. This way you could see money coming into your bank rather than being spent unnecessarily.

Once you have considered the above, you will potentially get a better idea of the true investment potential of any properties you may be in view of.

Starting an investment portfolio does not mean you have to stick to one kind of property either. Diversity is sometimes the key to success. By having a diverse mix of houses, townhouses, units, apartments or even share housing accommodation gives you an overall idea as to what best suits your budget and portfolio style. At any time you can always go down another path with your next investment.

Some other helpful tips for investing;

• Don’t get too focused on what your ideal location is to live, focus on what location is best to invest in.

• Try to pick locations that have the potential for ongoing income – like a unit or apartment near a large TAFE or university – you will see a regular supply of tenants as long as the establishment is operational.

• If you have a location you think might have good investment potential, try looking at what has recently sold in the area. By tracking what properties have sold you get an idea of what the demand in that area is like. Therefore you could see yourself securing a property that people want to live in and you have a better chance of securing a tenant. E.g. – if the majority of the properties sold are large family homes, you might find the tenant demand is very similar.

• Look at your investments future and potential. Property is always influenced by what your long-term goals are. E.g. – apartment growth potential is normally based on the building itself and how much it will become a sought after location for convenience or just the buildings features offered. Compared to a suburban dream, your typical house, and land, the land is the greatest asset in many cases.

So hopefully by following a few of these suggestions, you will be well on your way to finding your investment property and building a portfolio. If you do have any more questions or want some help with researching an area, we are always happy to offer some extra advice. Contact one of our sales consultants or property managers today!