INVESTING , HOUSE or APARTMENT ?
House or Apartment ?
Investing into real estate can be a secure feeling as it is a tangible asset , but always discuss this matter before committing with your Accountant-Financial Planner.
Once the above has been determined and we commence searching for our next investment property there are several other things we need to consider, such as what type of property are we considering or should we consider, for example, you can invest in different segments such as residential, commercial and industrial, that will do for the purpose of this exercise.
For the purpose of this exercise we have considered residential as it is a more common and sound investment. So now that we are set on a course of buying our residential investment the real estate agent throws a spanner in the works, so to speak.
The agent commences with discussing the benefits of buying an apartment rather than a stand alone house in the suburbs, so what do we need to consider ?.
Firstly all properties are different and your circumstances are also different to other people’s, once we can Identify our specific needs then we can focus on the properties on offer.
Buying an apartment normally means that you will be limited to what the apartment has to offer on the inside, you will need to consider the normal outgoings such as Council rates, Water rates, and building maintenance levies , also known as strata levies. If the building also has a swimming pool , lifts and large gardening areas you will have to consider if these outgoings are substantial. You will also need to familiarise yourself with other owners to set meetings as you discuss any future works required to the property so that all owners can agree on a planned budget. This at times can become frustrating as not all owners agree on particular items.In relation to the inside of your apartment normally you are allowed to fit it out as you please, check all bylaws just in case.
Some of the advantages are that you do not need to clean the outside of the property as it is done by contractors on your behalf. Owning an apartment in a Capital City is desirable for different reasons to a apartment in the suburbs. Capital City apartments appear to be a more astute investment compared to suburbs at the moment, this can change.
Buying a home has its advantages and its disadvantages. You will occur the usual Council rates , Water rates and insurance and the burden of all the property repairs and maintenance that come with it to yourself. What I like about free standing homes is that you own all of the land and the improvements. The land has a base value and you can always ad value to the property, the only barrier here is that you will need Council approval, but that generally applies everywhere.
It is also wise to compare the Capital growth of the particular area that you are considering, also compare Capital rate returns along with how the house returns compare to the apartments returns, last but not least always seek professional advise.
My pick is the house.