House Vs. Apartment – Which is the Smarter Buy?

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The question on whether to buy a house or apartment is never a simple yes or no and there are many different factors to consider. While one might be the right option for one person, another might work better for another investor, so you will need to look at your own individual circumstances and the property that you wish to buy and make a decision accordingly. Here are some ideas to think about when making that decision.

Highest Capital Growth

The main thing to think about with this decision is which property will give you the highest capital growth. Depending on your budget and the location of the property, one option may be better than another. If your budget is for $800,000 and you are looking to buy in a city location a house is probably the better option, whereas if you are working with a budget that is under $700,000 then an apartment will be an better investment choice.

First Time Investor

A lot of people think that a house would be a better option and would choose a house over an apartment any time because they think it will be better, but this is not always the case. If you are a first time investor then it is wise to seek advice from someone who knows the area that you are investing and has some years of experience with investing in property. Meredon Consulting have years of experience that they will be able to use in assisting you with making the right decision, and alerting you to things that you need to consider, especially if you have never invested in property before.

Patterns of Growth

Being aware of the patterns of growth is important with considering whether to buy a house or stick with an apartment. Taking the time to talk to a consultant will ensure that you have a better awareness of the bigger picture and can make informed decisions based on the facts rather than blindly stumbling into what could become a very expensive nightmare.

City or Suburbia

It is important to take into consideration the location of the property. An apartment in the city could be a much better investment than one in suburbia due to the location, although this is not always the case. When making this decision it is important to look at the whole picture on a case by case basis, as different cities have better property returns and some suburban areas will bring more fruit.

Design of Property

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The design of the property and how well it has been maintained could be another factor to take into consideration. If you buy an apartment in the city that has been thrown up in a short amount of time it may not be the best investment in the long term. Features of a house or apartment will either make it a great investment or one that could lose a lot of money, depending on these factors.