If you want to get stuck into the investment property market, a decision you'll have to make is whether you're after a house or a unit. This choice can actually have huge ripple effects on the rest of your investment journey, affecting major factors like price and location.
While houses have been the go-to for investment property, Here are three strong reasons why apartments deserve your attention.
If you're set on getting a foothold in the investment property market, you need to weigh up your financial competence. Worried sick thinking, "how can we afford a property?" Apartments may just be a preferable option for you.
That's because purely from a price stand point, they're far more affordable. According to CoreLogic RP Data's monthly indices from September, the median value of units in Australia's combined capital cities was $564,830. This is a drastic difference to houses, which had a median value of $729,620.
On the flip side, apartments do tend to be smaller and lack features like backyards and actual land. Still, it's a good place to start in the real estate scene.
Inner city living will always be sought after by young professionals, students and people who simple love the vibrance and bustling lifestyle unique to city living.
2. All about location
In many capital cities, those living in apartments have access to the inner CBD in a way that most house dwellers could never hope to. The availability of nearby amenities and facilities will simply be unmatched in many areas.
For these reasons, inner city living will always be sought after by young professionals, students and people who love the vibrance and bustling lifestyle unique to city living. While demand for housing in outer suburbs can rise and fall, city apartments are unlikely to ever lose any serious attention.
Furthermore, apartment building approvals in Sydney, Melbourne and Brisbane's metropolitan areas have been rising, according to a report from Knight Frank. If you're thinking of buying a unit in one of these cities, you'll have a good range of choices to put your property investment mortgage toward.
3. Rising demand
As noted by the Australian Bureau of Statistics, the number of single-person households will surge heavily in the coming decades, forecasted to count for 3.7 million homes by 2026. This only serves to reinforce the prediction that your apartment will have plenty of interested tenants, particularly individuals.
Of course this is just a glimpse – there still many other factors to consider, and it's always important to get sound property investment guidance before making any major calls.