8 reasons to invest in an apartment

Property investment is one of the most effective ways to make money, and with increasing demand for apartments, and house prices rising, apartments are looking like a better investment opportunity than ever.

1.   Price vs. location

Location is one of the most important factors when it comes to real estate. The location of a property ultimately determines the property’s worth. A beautiful house on a large block of land could be bought for $400k in a still developing, less popular suburb, but a small, rundown house could sell for $800k in a prime suburb. Apartments offer attractive prices in otherwise unaffordable suburbs, potentially 30-40% cheaper than a house. While you don’t own any land as such, the value of the apartment may appreciate faster than that of a house, due to growing demand.

2.   Retirement

75 million baby boomers are headed into retirement. Apartments are great for this purpose, and many of today’s apartment complexes may be converted into retirement communities in the future.

3.   Rising house prices

Rising house prices are forcing people to continue to rent later in their life. No one is able to afford a home at 20, and frankly, no one wants to. With a saturated job market, many students aren’t earning decent money until their late 20s, and often rent up until this point.

4.   Appeal

It is often easy to find a tenant for an apartment. You can offer them the entire apartment to themselves, instead of them sharing a house with others. Apartments are usually located close to public transport and areas full of potential work. Apartments also offer the facilities that would come with a very highly-priced house, such as a swimming pool, a gym, a sauna, barbecue areas, and more.

5.   Lower cost to maintain

When you invest in a house, you need to spend money on insurance, which is much lower if you own an apartment. As well as this, all maintenance issues are your responsibility when you own the house, yet in an apartment, the maintenance of the building and surrounds in the responsibility of the body corporate.

6.    Limited housing close to the city

With many people working in Perth’s CBD, it is easier and cheaper to live in the area. Yet housing in limited in the CBD, with the closest still being a bus journey away. Apartments are always offered in the CBD of any city, and demand from inner-city workers is high.

7.   Higher yield than houses

Your return on investment may be better, as apartments generally offer higher yields than houses because of the difference between rent and purchase price.

8.   Perth is growing to love apartments

The trend for smaller houses with views continues, and as demand for a place to rent is increasing exponentially, apartments are a safe way to invest your money.

This blog post is the intellectual property of Peter Taliangis of Professionals Fremantle and is being used on this site solely as a representation of my work.