In a separate article, we compared old and new houses when choosing an investment property. Each has its own set of pros and cons, such as the more appealing look for old houses, and that new houses come with statutory home warranty insurance. This time, we will help you choose between a house and a unit. We'll show you the benefits of choosing one over the other, so you can make a choice that's perfect for your needs. If you're ready, then read on.
As long you choose a house in an established area, you are almost guaranteed of its steady growth in the long term. So if you are looking for a long term investment, then a house would be the perfect investment property for you. What's more is that the house often comes with the land, giving you even more potential to improve the property and gain more from your investment.
On the downside, however, houses yield lower rental returns, since your market would likely be home buyers than renters. What it means is that a house might not be for you if you want a steady stream of income in the long term.
The great thing about units and apartments is that you can expect consistent income from it unlike a house. They are also getting more popular among the younger crowd as well as empty nesters who are looking for a low-maintenance property that come with amenities such as a pool and gym.
Units and apartments may not be for you if you are looking for a property to renovate or improve. The reason for this is that the improvements you make are limited by what the body corporate allows. In addition, you may also have to pay hefty annual fees when you own a unit.
Whatever type of property you choose, always remember that location will play an important role to your success. The better the location, the bigger the market, and the bigger the profit you could expect as well.
In sum, a house is perfect if you wish to have a long-term investment, which gives you the freedom to fix and renovate the property to your heart's content. Meanwhile, choose a unit if you're looking for consistent income and you wish to target a market that is looking for low-maintenance properties.
It also helps to find the right home loan even before you acquire a property. Our qualified advisors at Rate Detective are ready to help you. They will take your needs and budget into consideration and provide you with comparison rates of Australia's top lenders.