Investing in the right property at the right time can prove to be beneficial and cost effective in the long run. While real estate investment is a money spinner in itself, it is necessary to search for the best opportunity beforehand in order to yield maximum output and revenue from your investment. The question remains – a house or an apartment? What is the best choice for you?
While both houses and apartments have their fair share of pros and cons, the decision lies in your hand about what situation and scenario proves to be more fruitful for you.
Pros & Cons of Buying a House or an Apartment
1. Cost Effectiveness
The first and foremost point to consider when investing in real estate is the cost and value of the property. The cost of a house is generally higher than an apartment, even if they are of the same size and located in the same locality. This is because having a house gives more space, liberty and security to the home owner, and also because the real value of the property lies in the land not on the building. Hence a house is more valuable, but costlier to the investor. However, the high cost of purchase may render the sale of your house difficult because it will be targeting a selected clientele only, as opposed to an apartment that is affordable for the masses. Therefore, if you are looking for a sound and bigger investment, buy a house. Or if you are a first time buyer with a fairly limited budget, go for an apartment.
2. Returns
Whether you are intending to sell your property or rent it, the important factor is to get maximum return and profit on your investment as much as you can. Houses have an upper hand when it comes to sales because when real estate is booming and your property is premium and maintained, you can get a handsome share of money as its worth. Oftentimes, you might need to sell your house as soon as possible in order to move to a different state or country. In such situations, you can look for home-buying companies like Crawford Home Buyers (https://webuyhousesinatlanta.com/woodstock/) that can buy your property even without any renovations done and pay you the proper market value of the house as well. On the other hand, if you are looking to rent your property, it is easier to get a tenant for an apartment than for a house. Hence apartments are an ideal option if you do not want to sell your property and still want to use it as a regular source of income.
3. Convenience
A great benefit that you could enjoy when you buy a new property is convenience. If, for instance, you bought one out of the many holiday lodges for sale Yorkshire, you could enjoy the freedom to visit it whenever and stay in it as long as you want. You could use it for a weekend getaway, or you could repurpose it for further use, business-wise or personal. It could also serve as a contingency if the option of living in your main home is compromised. Besides, a lodge, bungalow, villa or any other good housing accommodation could serve as a great retirement home.
4. Maintenance Factors
Generally, owning a house requires much more maintenance as compared to an apartment. Regular upkeep requirements like mowing the lawn, general repairs, garden Tree Removal, checking smoke alarms, managing electricity, and more tend to be the owner’s responsibility when it comes to a house; you are accountable for all the charges associated with it. On the other hand, the apartment is part of a big complex and its maintenance falls under the supervision of the building supervisor. Hence, an apartment investment poses fewer maintenance costs than a house.
In a nutshell, the discussion can be summed up as:
HOUSE APARTMENT
Affordability Low High
Control over property (extension etc.) High Low
Maintenance High Low
Rental Income Low High
Profit on Sale High Low
Allan has been writing about investing for quite some time now. Allan has a BA in Business Administration with a speciality in banking and has made quite a few successful investments over the years.
Allan’s favourite topics include retirement planning, self managed super and money savings strategies.