House vs. Unit

housevunit-300x200

What makes a better investment – a house in the suburbs or a centrally located unit?

As the great Australian dream is pushed further and further out of reach for many people, renting is their only option.

Poor affordability is continuing to lock tenants out of buying their own property.

While this is disheartening news for renters, it is excellent news for investors – the demand for rental properties is skyrocketing and many landlords are reaping the rental rewards.

In this report, we look at the difference between buying houses or smaller dwellings as investment properties.

Is a house or a unit a better investment, when you are looking for the perfect rental property?

Apart from choosing the location of your future investment property, the other important decision when buying an investment property is deciding whether to buy a house or unit.

And don’t forget duplex’s, townhouses and villa apartments are also part of your property choices.

Changes to Strata Title laws in recent years have allowed for greater diversity in dwelling and their design, therefore there is a whole smorgasbord of properties out there for you to choose from.

But the biggest difference between houses and smaller downsized dwellings is the purchase price.

Units are generally more affordable as investment properties, and another important factor to consider is the holding costs. In most cases, the maintenance costs are usually shared amongst owners of a unit complex.

Ideally owners should consider the property on its own merits and what it has to offer.

You should look at the quality of construction, the ongoing costs, location and the competition experienced from other similar properties in the area.

At Professionals Fred Andriessen, we find that we generally have a much stronger demand for residential
houses rather than units.

Private investors provide 80% of dwellings for tenants, therefore they can help alleviate the rental crisis and make the most of the increasing demand for available properties.

Once you have purchased an investment property, it is then extremely important to employ a Property Manager who can look after your property and your best interests.

When you engage a Property Manager to manage your investment you should be hiring a professional, trained to maximise your return and minimise complications.

Achieving the highest possible return is the primary objective of our experienced and dedicated management team.

If you are thinking about buying an investment property and would like to know what is available in the area, contact our office today.

Picture4