Should I Invest in a House or an Apartment?
Detached houses and apartments can both promise a lucrative deal but if you fall short on necessary research, you may fall on the wrong side of the fence. Let me start with unit apartments.
What is cheap and just what is expensive?
Many buyers perceive apartments as a relatively cheaper buying option but ask a wise person and he will tell you how ‘cheap’ and ‘expensive’ can only be judged in terms of overall cost projection. For instance, if you buy something cheap and pay a fortune to maintain it, it cannot be deemed cheap. Can it be?
Downsides of an apartment….
Apartments may be procured for something less than what a detached house may command but they have hidden costs aplenty. As a first, there is a strata title or a community title for which a body corporate fees needs to be paid. Add to it, the maintenance fee which can get quite exorbitant for the high-end apartments.
If you scrutinise with an investor’s mindset you will well understand that buying an apartment unit reduces the range of prospective buyers. In addition, you may face difficulty availing reasonable borrowing options because the lenders are biased towards detached houses.
If your area is one where there are other large unit developments in the offing, rest assured you will have a hard time siphoning off tenants. High vacancy rate can be quite defeating in a long run.
…..and downsides of a detached house
This is not to say that a bed of roses is spread for detached houses. Yes, they have been loved since a time apartment units were not even ideated upon but this said, they have their shortcomings, too.
CBD areas get extremely cramped and in absence of desired spaces, many detached housing projects have to reach out to the outer parts of the cities. This makes commuting to jobs difficult even as it closes down easy access to shopping hubs, hospitals and schools.
Research is the key
Overall, just as I mentioned earlier, both can have quite a say in boosting your portfolio provided that you make it a point to research. In fact, a seasoned buyer’s agent who operates without emotion, solely on rational guidance, can be a great help. You can talk to me in this regard. I will be really glad to help.