Units or houses. Which one is best for an investment property?
When you are looking to purchase a real estate investment property, you may be faced with the decision of whether to buy a unit or a townhouse.
One the purposes of buying an investment property is to get the best return on your investment. Any Homes Realty share some information here to help any prospective investment property purchasers choose between a unit and a house.
Generally, houses are more expensive due to the land value. Units have typically less expensive entry points into the market, making them more affordable.
The costs to hold a unit are generally less than that of a house. Both types of properties will attract council rates but rates usually cost more for a house due to the land content.
However, some units have body corporate fees that can be just as expensive as the rates of a house, so caution needs to be taken when considering the holding costs of a particular unit.
The maintenance of a unit and the common areas is typically the responsibility of the Body Corporate whereas with a house, the homeowner is responsible for all maintenance costs.
Houses, because of the land content usually have more outdoor space available to tenants. Some units will have common areas available to the tenants like BBQ areas and pools or have small private courtyards.
Houses often come out on top for capital growth over a long period as the land value increases over time. Depending on the size and location of a unit, it too can experience good capital growth without having a land content at all.
Houses and units will always be in demand as some tenants who have families prefer to live in a house in the outer suburbs where a younger couple with no children may prefer a smaller, more affordable townhouse or unit close to the city.
Either way you need to purchase an investment property where rental demand is high so your property remains tenanted for the long term and is one that is as close as possible to transport, schools, universities, hospitals, cafes and shops.
Any Homes Realty, on the Gold Coast can help you walk through the minefield of purchasing your investment property. Understanding rental yields and tenant’s rights can be daunting without professional help.
It will come down to not just your personal preference but to the best rental yield of a particular property.
Any Homes Realty work with our professional partners, Agrade Investment to offer the best choice for quality investment properties in the Brisbane and Gold Coast areas.
Call Any Homes Realty today. We are a boutique and independent real estate agency that will take care of everything you need both personally and professionally when purchasing your investment unit or house.