In some markets, cheap a house may be a better option, illness in others a unit may reap better gains. So to make the most of your hard-earned money, ampoule you really need to do your research before you invest in either type of property. But when it comes to property, somehow people get sidetracked by the fact that property is a tangible asset, one that we can see and touch.

Investing in apartments

Apartments offer an affordable entry point into the market, in locations that may be beyond an investor’s budget if they were looking at houses.The potentially lower price point may also allow an investor to build up a diversified portfolio quickly.Another advantage of investing in an apartment in a strata scheme is that insurance, maintenance and upkeep are provided by the body corporate.

The specific size of the building is important, but it changes depending on the location. Remember not to get too caught up on whether or not the property has a balcony or a courtyard – that doesn’t necessarily make it a bad investment. If there is no demand in the market for those features, then it’s not important.

Investing in houses

When it comes to houses, you have to pay 100% of the insurance and 100% of the maintenance and upkeep fees. Every single thing that happens to the house is your responsibility.

If you own a house, all maintenance issues are your responsibility. One advantage to keep in mind when considering a house, is the value of land. Land appreciates over time, so even if all you can afford is a regional or outer suburb house – it could be a wise choice, provided you have assessed the supply and demand, affordability and economic factors outlined earlier.

Units vs houses in today’s market

It’s important for the investor to refer to economic drivers and affordability… this will lead to a particular market. Then look at the supply and demand for apartments and houses in that market.As a nation Australia is building (and buying) more apartments than ever before, particularly in capital cities. But some of the regional cities are actually building at the normal rates, and some have lower unemployment rates.


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