When it comes to making money, we’d all like to have a little extra in our pockets. And the same goes for property investors. Why invest in one kind of asset when you could make a better return from another?
The obvious question for property investors is, “which should I invest in: apartments or houses?” Although it might seem like a simple question, the answer isn’t entirely straightforward (as with most issues in the investment world). But according to property experts, like Camilla Dell, apartments generally tend to do better because of the larger buy-to-let opportunities.
Higher Cash Yields
The biggest advantage of apartments is their higher cash returns. Apartments just make more money than regular houses. The reasons for this have to do with the way that they are constructed. Apartments are generally designed to be repeatable units, put up all in one go inside a larger building. As a result, they tend to be more predictable and easy-to-maintain way, reducing the cost of buying and the money required for upkeep.
Buying Apartments Can Often Be Cheap
Not everybody is successful in the rental industry. Some management companies inevitably go bust. But their loss is your gain. Businesses that are in administration are often willing to sell apartments at discount prices. Houses are rarely held under management, and so the opportunities for bagging a bargain are far fewer.
Apartments Come With Shared Amenities
Buying a house with amenities like a pool, gardens and sports facilities is a multi-million dollar investment. It’s not something that the average investors want to do. But apartments and apartment complexes, like Crystal Lake apartments, include many of these facilities as a shared venture. Why is this a benefit for investors? Because it increases the premium while also spreading the risk. Investors can buy up a chunk of apartments for high-value clients without having to rely on a single income.
Strong Demand For Metro Areas Will Increase Apartment Prices More
Apartment prices are soaring right now across a range of cities thanks to strong demand and high job growth. With the latest predictions that US economic growth will increase by more than 50 percent over the next five years, the price of apartments is likely to rise even faster. This, of course, is excellent news for investors. All house prices are likely to rise, but those which are closest to the jobs and offer newly-wealthy professionals quick access to downtown areas are liable to increase the most.
Apartments Provide Discounts
It’s rare that you can buy houses in bulk. But apartments? No problem. And the great thing about buying condos in bulk is that you often get a discount from the seller. It’s less paperwork, less of your time and potentially a far higher return.
Apartments Have A Lower Entry Price
If you’re just starting out on the property investment ladder, buying an apartment can be a great entry point and a quick way to secure a monthly rental income. Apartments are often considerably cheaper than homes, and more often in high-demand locations.