Apartment or House? What is the better investment?

HOUSE VS APARTMENT – THE CAPITAL GROWTH DEBATE

Debunking the age-old debate on what is a better investment, a house or an apartment. With the influx of buyers entering the property market, this question has arisen more than often. So, when we talk about capital growth, what is a better investment? A house or an apartment?

Firstly, land always increase in value over time. It also gives plenty of flexibility regarding future potential to renovate, or even tear down and start from scratch.

However, with land, beckons a myriad of time to be spent, money to be invested and both constructional and financial skills.

With an apartment, while you lack a little bit of flexibility when it comes to renovating, and are subjected to the body corp rules, there is a lot of benefit when it comes to time management and accountability. The time and effort that comes with owning/ renting out an apartment is significantly less compared to that of a house.

As you can see there is basically a upside and downside to each, so to sum up here are a few pros and cons of both, because who doesn’t love a quick summary of all the important information.

House

Pros:

  1. Great capital growth potential.
  2. Flexibility with renovations and developments
  3. No body corp fees

Cons:

  1. Requires a lot of time, effort and money
  2. Higher maintenance

Apartment

Pros:

  1. Less time to be invested into upkeep
  2. Accountability is shared between yourself and the buildings owners
  3. Maintenance work requires less strain… usually.

Cons:

  1. Less flexibility when it comes to renovating
  2. Dependent on the body corp when it comes to changes and issues
  3. You don’t have custody of the land. There is always the potential for new owners to come in and change things up.
  4. Land is where the money is. So, you are paying similar money for less of a return.

At the end of the day whether you choose to go for an apartment or house, the first question you need to ask yourself is what are your priorities in the immediate future? Working backwards from there will ultimately help you decide whether to go down the apartment or house path.

Leave a Reply

Your email address will not be published.