One question that comes up more than any other is, “Wouldn’t a house with a backyard make a better property investment than a one bedroom apartment?” The answer is the most frustrating of all - “it depends”! It depends on the property, it depends on your budget, it depends on the location, and it also depends on your investment strategy.
- Houses have better potential for growth. Land will always appreciate and there is more land attached to houses than apartments. Land is also in short supply. In following the principal of supply and demand this means that good growth is to be expected.
- Greater capacity for development. It is possible to increase the market value of a house through decorating, landscaping, extensions and remodelling. The same scope for improvement is not present in an apartment.
- Potential to sub-divide, cross lease or sell well located property as land becomes more sought after.
- No body corporate fees.
- No restrictions (in many cases) placed on fencing, external colour schemes and pets.
- Cheaper maintenance costs than the upkeep of a rental home.
- Easy to rent with the draw of inner city living, transport efficiencies, easy care lifestyle.
- No gardens to upkeep.
- Less investment capital required when compared to a house.
- Purchasing a parking space along with the apartment can be used as secondary investment - lease out separately, or in addition to the apartment
No comments:
Post a Comment