Income Resource Club > Property > Houses vs Apartments Strategy
Houses vs Apartments Strategy
Houses
Advantages:
- More consistent growth over long term in established areas;
- You usually own the land;
- You have greater control over what you want to do with it;
- High land content for better future growth if it is in established areas;
- Usually easier to get finance;
- More room for value adding and modification;
- Town houses are getting popular with smaller family size and retirees.
Disadvantages:
- Usually lower rent as a percentage of the value;
- Can be higher maintenance;
- Can occasionally be difficult to get decent rent for large houses;
- Less security and facility.
Apartments
Advantages:
- Higher rental as a percentage to price;
- Less hands on maintenance;
- Good growth in fully built up areas with height limit;
- Increasingly popular with the younger generation;
- Meeting the demographic trend of smaller family size.
Disadvantages:
- Less consistent growth in areas that are not fully built up;
- Body corporate fees;
- Less control;
- Less room for value adding;
- Can be hard to get good finance for company title properties and very small apartments.
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