For first-time property investors, one of the big questions to ask is what type of property will you invest in? The answer depends on your own investment goals and strategies. Consult with your Property Manager on vacancy rates, demand and supply, rent prices and other factors.
If you’re considering apartments or townhouses, it’s important to remember that these types of property may be in a strata scheme, which will require you to pay ongoing quarterly strata fees.
Weigh the pros and cons of investing in a house or in an apartment.
Benefits of investing in an apartment:
- An apartment usually sells at a lower price point because of the space, so this makes this property type a good entry point into investing in properties.
- Apartments in certain suburbs have higher rental yields than houses.
- Maintenance is considerably less costly since apartments typically have a strata manager as well as its own fund to cover building maintenance.
- Location is a valuable factor for many prospective tenants and apartments are usually located within or close to key dining and shopping areas.
Benefits of investing in a house
- The value of land increases in value over time. If you own a substantial plot of land in a sought after area, you will likely see significant capital growth.
- There are tenants who prefer features which are typically only featured in houses, such as garages, backyards and extra space.
- Houses have higher rental yields, depending on the location.
- Compared to an apartment, you wield greater control over a house in terms of development and maintenance.
Stacey Lee Realty has experienced Property Managers to handle the task of maintaining your investment and ensure your investment is working for you with minimal hassles. Call us today at 07 3399 2966 or visit www.staceyleerealty.com.au