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  1. #1
    Join Date
    Sep 2003
    Location
    High up above and deep down under
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    10,801

    Default Investment: What’s best? A house or an apartment?

    Investment: What’s best? A house or an apartment?


    Guest blogger Monique Sasson Wakelin is a director of Wakelin Property Advisory, an independent buyers agent.
    For more than 20 years, I have been advising clients on how to invest in residential property. Over that time, the one question that comes up more than any other is, “Wouldn’t a house with a backyard make a better investment than a one bedroom apartment?”
    The answer is never a simple “yes” or “no”, but rather “it depends” - it depends on the property, it depends on your budget and it depends on the location.

    Source
    Last edited by donna; 14-10-2012 at 08:20 AM.
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  2. #2

    Default

    its better to invest on an apartment, for me it's more income generating than of a house, a now a days lots of people stay on apartments than buying their own properties.

  3. #3
    Join Date
    Nov 2011
    Posts
    448

    Default

    Thank you for the great article. I am actually thinking about investing in an apartment complex here in Australia or the US. I read that apartment owners make good money since the economical crisis more people live in apartment now.
    Last edited by donna; 11-10-2012 at 11:54 AM.

  4. #4

    Default

    Hey Matt,

    I honestly think it depends on the location of where you'd want to invest. If it's in a central location such as the Melbourne CBD or Sydney CBD, I'd definitely opt for an apartment. But if you're looking into regional areas or in mining towns with high potential growth like Perth or Queensland, then you'd be better off investing in a house. A census that was recently conducted by the Australian Bureau of Statistics about Australia's preferences for landed property or apartments suggests that Aussies do prefer houses. I can't seem to post links in my reply but if you google this, "Fewer occupants, more bedrooms: Census shows Australians prefer bigger houses", you should be able to find the article I'm talking about.

    Hope this helps matt, cheers.

  5. #5
    Join Date
    Nov 2011
    Posts
    448

    Default

    Hey Dman,

    Thank you for the article. I agree with you:it is all about the location. If I decide to buy apartment complexes in Australia, it will definitely be Sydney or Melbourne. But I also might invest in the American apartment properties somewhere in the south, Texas, for instance, as well.

  6. #6

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    If you buy apartments in the states, i would suggest buying a (B)rated or (A) rated apartment units. Anything else will be in the low income area and become a money pit. This may not be true in all cases, but I'm speaking from experience and (3) differ buildings later we still own.

  7. #7
    Join Date
    Nov 2011
    Posts
    448

    Default

    James, thank you for the advice. I agree Class A and B is what I was thinking. I would definitely would not want to deal with Section 8 apartments in Class D.

  8. #8

    Default

    Usually you'll find that growth between houses and units is quite similar in the long term. Otherwise, for example, if units were to grow by 3% annually while houses grow by 8% annually, after 20-30 years units in an area would be $500k while houses on the same street are worth $5M. This is just unrealistic, so the same level of growth would have to be sustained to keep the 10-20% price difference between units and houses in the same area.

    In saying this, growth is affected by supply and demand. If there is a high demand for units in a particular area, they may well overtake house prices due to less maintenance etc. I'd suggest this is doubtful though.

    Also, capital growth can be achieved through underlying land values. Land appreciates in value, while buildings depreciate, after all. So after time land will become more and more valuable and of course this will boost house prices up as a result.

  9. #9
    Join Date
    Jan 2013
    Location
    Canada
    Posts
    11

    Default

    I completely agreed with myspace_11.. Apartments is better choice

  10. #10

    Default

    I think its better to invest on an apartment, for everyone it's more income generating than of a house because in these days houses are very expensive so people likes live in apartment.


 

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