Apartments or houses: which is the better investment?

When the topic of conversation drifts towards investing in apartments or houses, it usually generates some debate amongst landlords!

 

 

 

It’s often a firmly divided camp, with those who believe that a property’s value is in the land on one side. On the other side, you’ll find those who believe that a property’s individual characteristics – such as location and number of bedrooms – are far more important than simply the dwelling type.

 

“Many first-time investors assume that houses are always better as investments as they have more accommodation and land,” says Monique Sasson Wakelin, director of Wakelin Property Advisory.

 

“This may have been true once, but as a growing number of Australians have come to prefer living closer to the centre of town, the patterns of growth in property values has changed.”

 

She believes that investors who are stuck on this question are often focusing on the wrong thing, as the question you need to be asking is not, “Should I invest in a unit or a house?” but rather, “What type of property will deliver a bigger return on investment in the long term?”

 

According to the Real Estate Institute of Australia (REIA), there’s not much of a difference in price growth between each dwelling type. Over the past ten years, median house prices have increased by 81 percent, while median apartment prices increased by 72 percent.

 

"Historically, over a longer time frame, price rises for houses are greater than that for units, [but] this is not always the case over a shorter to medium time frame," a REIA spokesperson says.

 

"Houses generally, however, require more attention in terms of ongoing maintenance than units do and thus do not always suit all investors. Units have much of the maintenance and care of the building and surrounds undertaken through the body corporate."

 

Ultimately, there are pro’s and con’s attached to any dwelling type, and the right investment for you will depend on your risk profile, investment strategy and financial position.

 

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

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