According to the latest Census data from 2021, approximately 90% of the total number of occupied residences in Albany are standalone houses with semi-detached houses, flats and apartments making up the rest. This clearly shows that houses are more favoured by families than units. If you are planning to invest in property in Albany or the Great Southern region, this is the most important piece of information for you. However, there are some other factors that you need to consider in order to find out which type is a better investment option for you.
Supply & Demand
The simple law of economics can give you a solution for this question. You need to check the number of houses, as well as apartments, available to tenants in the area you have selected. Another point to consider is the development plans for the area which will increase the number of dwellings in the future. Even if the demand for houses is higher than for units, a unit may still be a smart investment if there is demand but not enough supply. After all, not everyone can afford a house and you can avoid competition this way.
Affordability
This is the driving factor behind any kind of investment. Houses are always more expensive than apartments. Even if you can afford to invest in a house, you should always check the average income level of the population living in that area. It has been observed that though prospective tenants desire high-end and well-maintained houses, they mostly go for dwellings in suburbs predominantly occupied by the middle-income level. These families usually choose to live in apartments because they are more affordable. In this case, it would be better to invest in a unit rather than a house to attract more prospective tenants.
Maintenance
If you invest in a house, all the maintenance expenses need to be borne by you. You also need to pay the whole insurance amount yourself. This can turn out to be a very expensive affair. However, the value of land appreciates over time and you can earn a good profit if you are happy to hold the property over an extended period. Investing in apartments does bring down maintenance costs significantly, but you need to be mindful about buying units in huge complexes with many amenities. These structures can increase the body corporate fees substantially, in turn driving up associated costs.
After carefully deliberating on these points, you will be making an investment from a position of strength. If you need any advice or assistance, the experts at Wellington & Reeves are well equipped to lend a hand. Get in touch today!
