Purchasing Investment Property: Houses Versus Apartments?
Property investment is not something to be taken lightly, as there are a number of different questions that need to be answered before committing and taking the plunge.
However, if you’re looking into purchasing property in a metropolitan area such as Sydney, the first question you should answer is this: what type of property am I interested in investing in – apartments or detached houses?
And just like everything to do with property, there are a number of different factors to consider for both sides. Ultimately, investment property is purchased in order to make a healthy return on your property and (hopefully) secure a profit.
Therefore, an important factor to consider is the type of income you’d like to earn from your investment. For example, if you’re aiming to purchase property in the heart of a capital city, it would be worth considering purchasing apartments.
This is because, while they may not necessarily accumulate as much in capital gains as a detached home, having a well-located apartment in a bustling city means you’re almost guaranteed to have it occupied at all times.
Furthermore, you’ll be able to earn a decent amount from the rental yields each week – giving you the perfect option for regular, smaller amounts of income.
On the flip side, if you’re after making a larger, more rounded profit at the end of an extended period of time, look into purchasing a detached home in the suburbs.
Houses are generally more affected by capital gains over periods of time, so if you do your research and find projected hotspots for upcoming property, you could set yourself up to reap the rewards of strategic purchasing after a period of years.
Another factor to consider is how easy it is to increase the overall value of a property. Unlike apartments, houses can be easily renovated and remodelled in order to up their market value.
For example, if you have an older home, touching it up could help to increase its prominence in the market easily. However, it has to be remembered that houses generally take more time and effort to upkeep.
While apartments often have building managers to take care of any small issues that arise, unless you have a property manager, anything that goes wrong at your investment home will be your responsibility to take care of on behalf of the tenant.
There are a number of other factors to consider, which is why it could be worth getting in contact with a real estate expert in the area you’re hoping to invest in.
Their knowledge of the local area, coupled with expert opinion and awareness of upcoming trends, makes them a valuable asset to have when considering investment property.