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PPG_BLog_April_image 2_house v apartment

According to the Real Estate Institute of Victoria, there’s not a huge difference in price growth between houses and apartments, although it’s not identical. Over the past ten years, median house prices have increased by over 100%, while median apartment prices increased by around 80%. The REIV graph below provides a great visual perspective.

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There are many pros and cons to the debate of investing in a house or apartment. Whilst houses do perform better in the capital growth department, they generally require more attention in terms of ongoing maintenance than units. Units have much of the maintenance and care of the building and surrounds undertaken through the body corporate.

Houses also generally cost more than units, so units often appeal to first time investors with a more limited budget. The current median price in Melbourne for a home is $826,000, while for a unit it is $583,000.

In terms of rentability, both houses and units are in demand right now. To optimise your investment, it pays to look for places where rental demand is always high, such as around schools and universities, public transport or lifestyle areas with easy access to parks, cafes, shops or beaches.

The right investment choice for you will depend on your financial position and investment strategy. Are you looking for regular long-term income, or do you plan to renovate and sell the property as soon as you can? Before making any decision it’s vitally important to have your investment plan well mapped out.

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