Ever since we were convinced about the usefulness of property as an investment, we have devoted countless hours debating which makes for a better investment: houses or apartments? Decades ago, when we were stuck with our “McMansion in the suburbia” dream, a majority of us would have voted for houses. But now that close-to-CBD life is gaining prominence and we have cleanly departed from the ‘McMansion’ era, the debate has begun to be fought more aggressively. Clearly, the battle lines have been drawn and no side is ready to believe that the other side has enough points to convince them.
Over the ambit of this article, let us get introduced to both these investment types, read about their pros and cons, take a look at questions you must ask yourself before deciding on an apartment or a house and lastly–but by no means the least–let us take up a really innovative stance (perhaps the best kept secret of real estate) and figure out which is a better deal between the two.
Property investors are often confused about the best way to select a property. The rules which apply for an owner-occupied property differ quite a bit from the investment piece. Many factors, internal and external, come into play. You have to be cautious about encroachments, title deeds, lease agreements and tenancy negotiations. At the same time, you have to keep an eye on location, infrastructure initiatives from the government, rental yield and capital growth.
Over the last few years, Australia’s economic growth hasn’t been anything that’s worth talking about. Australian housing market, however, has made many investors very happy. A year to end-Quarter 3 2015 analysis reveals that house prices shot up by 11.4% across the eight chief capital cities of Australia. This ‘nominal’ rise can be seen as a 9.72% ‘real’ or inflation-adjusted rise.
Moving into a new home is, without a doubt, one of the proudest and happiest moments in a person’s life. Moving in, however, is hardly the first day in the calendar of the home acquisition process. For this day to come, many things have to fall in place first. Buying a home can be a rewarding adventure but the process, in itself, is one which you have to be very diligent about. Each step of the way, there can be hidden traps waiting to give you a sucker punch.
Buying a home is one of our top dreams in life, but there are lots of sacrifices that go into the process. You do not become a homeowner unless you put in the hard work. While it can be an emotionally rewarding and a monetarily lucrative journey, there are traps in the way that you have to be beware of. Let us read in detail about how these pitfalls can set you back and how one in particular can destroy all the effort you have put in.
Each property cycle has certain typical characteristics. While there are a few aspects which do not change, there is bound to be a factor Y that is unique to each property cycle. Each cycle goes through a peak and a trough phase, a downturn and a recovery phase but where one cycle may be marked by excess liquidity (its unique factor), another may be peppered with lack of consumer confidence.
