Most people consider buying a house to be a lucrative investment when it comes to a property, but the case needs to be made for purchasing an apartment instead of a house. There are various reasons why purchasing an apartment seems to benefit more investors in the modern age than houses. So why is this?
The Buy To Let Phenomenon
Well, less a phenomenon, more a very popular way to take advantage of the housing market, and you can find more information on this at https://money.comparethemarket.com, but the idea behind buying a property and becoming a landlord is a very popular way to make money. Many people take advantage of this, also known as house flipping, but when it comes to apartments, the fact of the matter is that apartments are generally more affordable than houses. So many people can’t afford to purchase a home, so they have to make do with renting. The millennial generations, or just people in their early 20s, are looking for ways to rent a property so you could provide this outlet for them. Beware; there are more ways than ever to be ousted as a poor quality landlord, meaning that people aren’t likely to flock to you and your properties. https://www.tenavox.com is one site that acts as a forum, where prospective tenants give feedback about various aspects of properties. But as so many people are looking for the cheapest properties, apartments will never go out of fashion in this respect.
Apartments tend to be located in built-up suburban areas are located smack bang in the middle of a city. As the demand for apartments in that area necessitated the need to build, this means there is a high amount of people who need to live in those areas, either for commuting or convenience purposes. For young professionals, they need to live in burgeoning city centers, and this is another thing you can take advantage of. By investing in an apartment in a city center it is automatically in a desirable location, meaning you will have more applicants for tenancy, but also the caliber of tenants, in combination with the location, means you can charge a decent amount of rent. In addition to this, even if you choose not to act as a landlord, the location means that the value of the property will increase year after year.
You Could Save A Lot More Money
Not just because the property is cheaper that house, but if you have enough money to purchase two apartments instead of one house, this is far more advisable, pending you have the time and inclination to look after both. This will help you to double your investment, but it’s going to be a bigger task to manage both properties. Furthermore, if you purchase an apartment in a complex that is owned by the freeholder or a managing agent, they will generally do the work, for a fee. So this can save you lot of money.
So, if you only have a certain amount of money and you’re looking for investment, an apartment is a very suitable option.