Houses vs. Apartments Strategy

Houses

Advantages:

• More consistent growth over long-term in established areas
• You usually own the land
• You have greater control over what you want to do with the land
• High land content for better future growth if it is in established areas
• Usually easier to get finance
• More room for value adding and modification
• Town houses are gaining popularity with smaller families and retirees

Disadvantages:

• Usually lower rent as a percentage of the value
• Can be higher maintenance
• Can occasionally be difficult to get decent rent for large houses
• Less security and facility

Apartments

Advantages:

• Higher rental as a percentage to price
• Less hands-on maintenance
• Good growth in fully built up areas with height limit
• Increasingly popular with generation Y Meets the demographic trend of smaller family size

Disadvantages:

• Less consistent growth in areas that are not fully built up
• Body corporate fees
• Less control
• Less room for value adding
• Can be hard to get good finance for company title properties and very small apartments