Hiya,
Is investing on apartments better than investing in houses for positive cashflow?
Things I am considering are.. Obviously Apartment/units costs less than houses. Because land price is shared by all units of the apartment where as individual houses land cost is more.
Which one increases more in capital growth? Imagining both are in same area.
Which one has more positive cashflow per month?
Thanks in advance.
AkiHi Aki,
Apartments often show a higher Gross Yield than houses. As you said, the land cost is cheaper for an apartment – but this also adversely affects the growth (because it is usually LAND that increases in value – buildings depreciate/deteriorate). This makes a unit cheaper to buy, thus requiring less rent per week before being “positive”.But keep in mind that apartments also have “Body Corp” costs, and some of these can be prohibitive. i.e. an extra cost for a unit that does not apply to a house.
Personally, I prefer houses – you can do a reno without having to “get permission from the Body Corp”, and when you are tidying up the front yard as presentation, you are only answerable to yourself no matter what you do or spend. Houses also differ from one to the next, unlike units which can all be identical.
Welcome aboard, Aki – spend some time reading around – the “Training Centre” on the Home Page is an excellent source of ideas and knowledge. Some threads provide really good value too.
Benny
Thanks Benny. Great to hear some response back. Sure will check the training centre.
Cheers,
Aki
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