Houses versus apartments: Things to consider for investment property

By the resi financial blog team, 28 November 2013

Houses versus apartments: Things to consider for investment property

When you're looking into investment loans to purchase a rental home, there are a number of things to consider before committing to any one particular property.

For example, you should give a moment's thought towards what kind of income you'd like to earn, and which type of property can service this - houses or apartments?

This can have a relatively large influence on your profits, especially when you factor the location of your property.

After all, most people purchase investment property with the end goal of making a healthy profit for themselves, so taking this into consideration is the backbone to a good real estate decision.

Purchasing property in a bustling metropolitan area near the central business districts lend themselves to faster rental turnovers, which would make an apartment the perfect decision to make in this circumstance.

People will always need property close to their jobs, which helps to keep your investment apartment consistently occupied. This is where apartments make a great investment type for those looking for short term, fast gains through rental yields.

Apartments can be cheaper as an investment overall, but the closer you get to the city the higher the costs can rise. Furthermore, many belong to strata schemes, which can add on to your overall annual costs.

Houses can undergo increases in value through a number of avenues. Something as simple as renovating the property can help to boost its market value exponentially, while apartments are harder to renovate and add value to.

These are just some of the points to consider when looking into investment loans and planning a property portfolio. Smart investors could have a mixture of both property types, in order to have the benefits of both long and short term gains.

Categories: Home Loans, Property Investment