Posted on June 12, 2015
What kind of property should you choose to invest in – a home or an apartment? It’s one of the most commonly asked questions from investors. Like most things, there are different answers for different scenarios and none of them is right or wrong.
It’s important to remember that the type of property you buy will have an effect on your rental returns and your capital growth, so you must carefully evaluate each option. It’s advisable to do some thorough research before you begin. Identify the area you’re interested in and find out information about the common dwellings within that area. Find out about the people who live in the area: What do they do for work? Do they travel? Do they have school-age children? Having an idea of what people are looking for will help you identify a property that will be in demand.
Weighing the pros and cons
Both apartments and houses have their own strengths and weaknesses. Which option is right for you?
Have you made your decision?
The type of property that you decide to invest in should be in line with your investment goals. You must investigate all the potential options and decide on their merits yourself. Either option – house or apartment – may suit, but how well will depend on factors like location, suburb demographics, and returns, which are dictated by the market. A careful initial evaluation is important.
It’s also imperative that you seek professional advice prior to making any investment decisions. Need help? ParkTrent is Australia’s largest privately owned real estate company. We provide a full range of services from buying a home or apartment through to property management and growing your investment portfolio. How can we help you?
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