Investing with property units and apartments

| January 16, 2013

One thing that most investors will ponder at some time is  “which is better – an apartment or house?” .Both have their positive and negative points.

Investing in property is  the next big thing to  investing in shares to make money in Australia and  every big property investor has their own millionaire  story  and how they got  to that stage where they have 10 properties or more in their investment property portfolio.

property investing in house vs unit apartment

Successful road to property investing

There is no one successful road to property investing  as can be seen from various different stories  from successful  property investors but  many  Australians have managed  to become multimillionaires by following  their own tried and tested  property investment strategy  which they have built  up as they invest.

One of the things most property investors  have at some stage  or in the beginning  needed to grow their  portfolio rapidly and exponentially is  $$  and  that is by  using wither substantial equity in a existing property  or then getting lucky with a rapid property value growth  and then sale of that property  to double their capacity to invest. Money makes  money , but  to  do that first you have to make money ( or then save money)

Investing In property – Unit , Apartment or House ?

They both have their plus and minus points , but just today  i read an article  in API magazine on a lady  who prefers investing in  apartments and units rather than houses  and has a 10 + property portfolio and happy with it .

I Guess apartment and unit investment works for some  as investment

Here are some  things  you can consider while  investing in units or apartments :

Should be close to CBD or City area ( Better rent potential , no vacancies)

No lawn moving  and less maintenance

More secure from burglaries and break ins

2 bedroom units or apartment’s  attract a larger segment(family)  and not only singles

Watch out for ageing blocks with high maintenance and high strata fees and do check the minutes of the last meeting before you buy to ensure that you are note whacked with  a surprise increase in costs  that might be planned in the near future.

Does you unit / apartment have a designated carpark ?

Proximity to public transport our CITY CBD

Is it a ground floor unit with a small backyard or frontward space, which can also open a broader segment of small families and couples starting out who might want to rent out  your apartment( and therefore having more renting potential)

Is  the strata fees and other fees for the  apartment complex and your unit reasonable or affordable?

Generally Apartments or units tend to rent out more easily than houses in most locations ( and even more so when they are closer to the city CBD),  and they have lower costs and require less upkeep. The negative with  this is like a house  you don’t have a front yard or backyard and therefore  also less or no  land value when you own a unit or apartment.

invest in house or apartment waterfront

A negative with investing in old aged units if you also plan  to live in it  for a while is  some old units can be a bit rough  attracting  rough people or bogans  who  take their  social responsibility less seriously causing more problems for the other units in the block.

Census data shows that 77% of Australian use a motorised vehicle to get to work and only 12% take public transport – the rest cycle, walk or work from home and so i guess its good  to have designated car space. Some property valuer’s  also take this into account while valuing a property making it a plus point  to have car parking space.

Regardless of whichever option you choose to take and got with  – apartment or house – investors are wise to do their homework to find a property in a good location which ticks as many investment boxes as possible to get  best return on their investment

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Category: 2012, apartment, apartments, Investor, Property, Unit

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Property man writes articles related to property , stock market and finance. if you like what you see do bookmark the blog and leave me a comment

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