Investing in a real estate property is a great way to secure a steady extra stream of income for yourself in the future. However, it’s also a path that has many forks, with many choices to make. One of the most fundamental decisions you have to face when investing in property is whether to choose a house or apartment. Below are a number of questions to ask yourself when considering this decision.
Are exterior aesthetics important to you?
As you can see on websites like www.coralhomes.com.au , houses have the ability to be delightful structures that look amazing. A house gives you a lot of variety to choose from in terms of exterior aesthetics, while apartments are very limited in this regard. If your dream investment property involves landscaping, gardens, or striking external features, a house is most likely more suitable to you than an apartment.
Would historic trends influence your decision?
Traditionally, houses are the more reliable and secure investment. More recently, apartments have begun to make up ground (figuratively), but houses are still widely considered the safer option in terms of property investment due to the physical land that comes with them.
How much responsibility do you want?
In renting apartments, some of the burden of things like maintenance and repairs will be taken over by a body corporate. Meanwhile, in a house, this responsibility will fall on you as the landlord. While some people like the shared responsibility that comes with an apartment investment property, others prefer being solely in charge of what happens with their property. Also, the responsibility of having to pay rent or a large mortgage might also be a factor when deciding between a rental or a permanent house. Where you sit on this issue will most likely come down to your personality type and perhaps past experiences with landlords or body corporates.
What are the lifestyle trends in the area?
It’s important to consider what kind of lifestyles are trending in the area where you’re thinking about buying an investment property. If apartment living is increasing in popularity, that might be the way to go. But if houses are still the dominant home structure, this could be your preferred route.
Are you in this for the short term or long term?
If your investment property is a long term financial strategy, the past points to houses as being the more stable and profitable option for investing. Meanwhile, recent evidence suggests that, in some cases, apartments can yield a stronger return in shorter or medium time frames. This is an important factor to consider when making your decision; typically, investing in property is something done with the long-term gains in mind, however, whether this is the case for you is determined by your goals and perceptions.
There are several things to take into account when deciding between investing in an apartment or house. When it comes down to it, the choice depends upon your personal preferences and your view on all the questions above, as well as anything else you consider an important factor. There are both advantages and disadvantages to either option but, regardless of your final decision, you’ll most likely find that investing in property was a wise decision that results in financial rewards and emotional satisfaction in the future.