When it comes to property investments, there are loads of options at your disposal. The two most invested in property types are houses and apartments. Today, I want to tackle one of the greatest debates of all time. Which is the better investment out of these two? Carry on reading, and you’ll find everything you need to know:
To start things off, let’s take a look at apartments. What is it about these properties that make them good investments. I’ve come up with a few arguments, to help get my points across.
Generally speaking, apartments tend to be the cheaper purchase. What I mean by this is that if you compare a three bedroom house with a three bedroom apartment, the latter will be cheaper. Of course, this is comparing two properties in the same location, as the location is important to price. So, say there’s a new real estate development with new apartments and houses for sale. It would be more affordable to invest in the apartments.
Apartments are also typically in the most desirable locations. You can find a house out in the middle of nowhere, but you won’t find apartments there. They’re usually close to cities, meaning they’re highly desirable and easy to find tenants for. Plus, it also makes them easier to sell on in the future and gain a profit.
You’ll also find that apartments are low maintenance. You don’t have to worry about keeping lots of rooms in good condition. Plus, there’s no worry of a garden to look after either. This makes it less likely your investment will decrease in its condition. A lot of people invest in houses, and they can get grubby over time, damaging their value.
Having looked at apartments, it’s time to look at the arguments for investing in houses. I have some interesting points, and you can read them down below:
Although houses are high-maintenance, they also propose a greater chance of adding value. You can do a lot more to a house than you can to an apartment. There are plenty of drastic changes you can make to the structure, etc. This means you can boost a home’s value considerably by adding things to it.
Houses are also more desirable for a lot of people. Especially families that want a place to settle down and live. It may be easier to sell a family home than it would be to sell an apartment.
Finally, my above point leads me to think of this last one. More people will buy houses than they will apartments. Apartments are more of a rental property. People will rent out apartments, but prefer to buy houses. So, if you want to buy and sell properties, houses may be the better bet.
As you can see, both properties have their good points. As for which is the best? Well, it depends on the investment you’re making. If you’re into the property flipping game, I’d say houses are the better investment. If buy-to-let is more your thing, then apartments are the winner. Neither is worse than the other; it’s just a case of different strokes for different folks.