If you’re looking to buy an investment property in Australia, you’re undoubtedly looking at different home real estate options. You can buy a condo, a townhome, or a house. While all of these are fantastic investment options, they each have their pros and cons depending on your financial situation. They have varying levels of risk, as well.
For people interested in being landlords, there’s often a debate whether or not to invest in a single-family house or invest in a condo or other multifamily unit. Here are three reasons why you should consider a home for your next investment.
Home Real Estate Has The Highest Appreciation Potential
While apartments and townhomes have appreciation potential, they don’t have quite the same upside as houses. Most families, when they can afford a home, want to purchase a home. The dream of most Australians is to own a piece of land with a structure that they can call their own, which is what home real estate provides.
Apartments have monthly fees that you’ll either have to pay as the landlord or your tenants will need to pay. Either way, this means that tenants will have less money to pay you for rent each month. Generally speaking, single-family dwellings in any given area command the highest rents. Therefore, if you’re looking for the highest cash flow, a single-family home is usually the way to go!
Geographical Diversity And Safety
The best apartments tend to be in major cities like Melbourne or Sydney. These places are where landlords can find ample tenants who are willing to rent these places.
However, if you’re looking to be a property owner long-term, then geographical diversity is essential. Tying up all your investments in Perth, for example, is going to be problematic if Perth suffers an economic downturn that some of the other places don’t have.
Home real estate, on the other hand, is everywhere. The smallest of small towns in this nation have homes in them. There’s almost always a family that will be willing to move in and occupy your house (presuming, of course, you’ve picked the right location). Therefore, you can achieve diversity in your investment portfolio a little bit more easily with homes than you can if you invested in apartments or townhomes only.
Invest For Your Goals And Ambitions
Ultimately, any property investment that you make should further your ambitions and goals. Whether you purchase a home, apartment, or townhome will, statistically-speaking, be a high-ROI investment that will provide rental income for years to come. You’ll likely have some form of appreciation and be earning a stable rental income. It’s one of the ways that many Australians have managed to build a substantial net worth.
If you’re looking for the right home real estate, please contact us today so that we can help you figure out the right property for your needs. We’re your trusted property partner and operate with honesty and integrity. Our mission is to ensure that you find the best property for your situation!