Are you considering investing in property?
While buying real estate is generally considered a sensible investment, there are a few things you should consider before you take the leap.
The main choice you are faced with before you buy an investment property is whether to buy a house or an apartment.
You may have enough money to invest in houses, but have you considered whether there may be more advantageous to buy apartments?
Read on to learn more about why you should buy apartments as investment properties.
If you are considering buying a property, one of the first things you have to consider is your budget.
Apartments offer great affordability compared with other forms of housing, which is why they are so often favored by investors.
Because they are smaller and do not have land and gardens to tend, apartments are also cheaper to maintain.
With an increase in young people choosing smart apartment living in urban areas, with a preference for smaller living spaces, buying apartments can be an affordable way to access this growing market.
Reliable Income Stream
One of the most important aspects of investing in property is that you can earn a living from its rental income.
Since 2012 there has been a trend among millennials to favor one bedroom apartments. This has been reflected in the construction industry’s appetite for building apartment buildings.
With apartments being so popular among young professionals, it has never been a better time to become a landlord.
Unlike many other forms of investment, owning rental property will almost always guarantee you a regular income stream. And if you keep your property well maintained and desirable, there is no reason why the apartment you buy can end up paying for itself.
Buy Apartments and Create a Portfolio
Once you have bought an apartment, and created cashflow from it you could start to think about buying more property.
Because apartments are more affordable than houses, they are a great option for you to create a property investment portfolio.
You can create your own property portfolio much quicker by buying apartments, which will give you the added security of more rental income, and more assets to sell.
The experience and knowledge you will gain from your first apartment purchase will help your confidence and ability to start building an impressive property portfolio.
The Future of Modern Living
The apartment construction industry is in great health. In 2017 the revenue of the American apartment construction industry topped $42 billion.
Young professionals and retired people are increasingly choosing to live in urban areas with easy access to amenities, culture and transport links. With this increase in demand, will come an increase in average apartment prices in desirable areas.
Investing in these properties now could see sizeable increases in the value of your investments as demand will start to outstrip supply.
Get More Property Investment Advice
These are just some of the reasons you should buy apartments as investment properties.
If you are thinking of becoming a property investor, make sure you have all the facts at your fingertips and check out all of our expert advice on buying, selling and investment.