It’s a common question I’m asked – which makes a better investment: a house with land or an apartment.
I’ve written about this topic in a number of blogs, but was asked to answer this question in 150 words or less for a recent issue of Australian Property Investor Magazine.
Now if you know me, you’ll know it’s hard for me to restrict myself to 150 words or less on any topic.
Anyway…here’s what I said:
There is no simple answer, but rather it depends on the property, your budget and the location.
Successful investors must own the type of property that will be in continuous strong demand from both owner-occupiers and tenants, because the former push up market prices, whilst the latter help to pay your mortgage.
While in the past this was houses, now significant changes in our population profile and lifestyle priorities are feeding a strong trend in apartment living and this is changing the pattern of growth in property values with apartments making great investments.
But you can’t just buy any apartment! Look for one with an element of scarcity, so avoid the new big apartment complexes and instead look for a property with a “twist” – such as art deco features or a special location or the ability to add value through renovations.
If you want to read more:
As I said, there are a number of blogs here at Property Update with more details of this topic. You should also read:
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