Real estate is one of the most lucrative areas of investment. It is always fruitful because people will always want to have a place to live or rather stay. However, for the investors, the challenge comes in when they need to decide whether to invest in a house or an apartment. The investor could use a local, credible real estate agent to assist in successfully investing in the real estate market. So which one is the most reliable and lucrative? A house or an apartment? Here is a look of the two in determining which is the best investment option.
Whenever anyone invests in any real estate property, the first thing they consider is if the property will be fruitful, in terms of the returns. When you talk about the real estate, the type of return that you would expect is the rent. Considering the return in rental income, then apartments are the way to go. In the capital cities of Australia, the average rental yield for apartments in the last quarter of the year was 4.9%. This was higher compared to the 4.2% rental yield for houses. The average yield for apartments in Adelaide was 5%.
Maintenance is another vital aspect to consider in the real estate investment. With the apartment, they are less costly to maintain. In Australia, the majority of the basic areas will be taken care of, so you will only be needed to take care of the internal aspects. Areas like plumbing and other delicate areas will be under the care of the body corporate. The building repair fees will be split among the owners of the apartments of a certain complex.
When it comes to the control over the property, then the house takes the lead. In the Australian real estate market, the owner can do whatever they want on their property. Whether they need to repair or renovate, for the sake of increasing the rent, then they have the authority to do so. On the contrary, the apartment owners are slightly restricted. They must come to an agreement with the local body corporate in case they need to make any changes to their property.
The property owners will mostly focus on the ability to increase the property in order to yield more profits. With the houses, since they are purchased on a land, then they will be available for expansion. The owner can make several enhancements, which will let them attract more tenants. On the other hand, apartments are difficult to expand. In addition, they do not necessarily have their own land, because there can be more than ten apartments in one building, sharing the same land.
There isn’t any direct call between the two on which is the best for investments. This is because the choice will depend on the objectives of the buyer. Some investors might choose houses outside the city, for the sake of the rise on demand. Nevertheless, there are some people who will opt to buy apartments that are in the city, especially those that are mostly based in the city, in terms of work. So depending on the objectives of the investor, they will choose the right option to invest in. One major tip we have is to get in contact with a local real estate agent that can firstly provide their first-hand expertise but also has a wide range of online resources and an expert digital marketing agency to help. We recommend to choose a real estate agent that is growing and expanding like the team at www.ocre.com.au as soon as you’re considering investing.