Should I invest in an apartment or a house?
- Research the local real estate market and find out whether houses or apartments are in higher demand. Market conditions change regularly.
- Talk to a First National Real Estate agent to find out what’s popular in different regions and different parts of the city you wish to invest in.
- If you already know where you plan to invest, focus your research there and determine which type of property is in demand and which is in shortest supply.
- If you’re aiming for a portfolio of properties, then a mixture of houses and apartments is a good way to diversify and minimise risk.
- Apartments are usually less expensive so the answer may lie in affordability.
However, houses tend to maintain and improve their value more consistently.
- Some property investors believe apartments are too similar to one another and that houses offer more potential to differentiate and add value.
- With a house, you’ll be bearing 100% of the costs of maintenance whereas in some apartments, body corporate fees may cover certain expenses.