Since Australia’s housing market is diverse it offers everyone several options for investment. And if you’re taking a first step in investment or diversifying your portfolio it can be a bit challenging due to its volatility. However, when it comes to investing in a property thorough market research is essential. Among many other options let’s say you’ll either choose apartments or houses it all depends upon your investment strategy.
Here’s a simple breakdown of the pros & cons of apartments and houses to assist in your decision-making procedure.
Investing in Apartments
Lately, apartments have become a popular choice in the Australian property market. As residing in an apartment offers a vibrant city lifestyle who wouldn’t want to invest in apartments right?
- Compared to houses apartments are affordable making them a good entry point for first-time investors.
- In the case of apartments, the upkeep costs are typically low as it is shared among all other owners.
- As apartments are usually in a desired location, the rental yields tend to be high.
- Body corporate regulations may restrict you from any modification or renovation to the apartment.
- There seems to be less growth potential when it comes to apartments as other factors such as location & market dynamics can impact the value itself.
Investing in Houses
Investing in houses can be a lucrative strategy that can help an individual for future wealth generation. But before stepping into this journey one should be aware of the pros and cons.
- Houses attract more reliable rental returns than apartments as families & couples prefer to reside there.
- Even though the value of a house may depreciate the land’s value appreciates over time. So, there is a higher chance for capital growth in the long term.
- Being the sole owner of the property, there’s room for any renovations or modifications in the property.
- The entry point for investing in houses can be complex as it often comes with a high price tag.
- To keep the property in good condition, timely maintenance and repairs are crucial. You’ll be looking after all the expenses by yourself which can lead to high upkeep costs.
Which one is better for you?
The investment goals & strategies may vary for each individual leaving them with a choice to invest in apartments or houses. But the important part is to carefully align your investment goals with financial circumstances & personal goals.
And even after exploring the wide property market if you are still wondering which can might be best for you. Then it is better to call our team of experts who can support and guide you for the investment journey.
Contact Sapphire Real Estate agents at 1800 MY SAPPHIRE!!
