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Units or Houses - Which one should I buy?

March 18th, 2014.

Topics: Landlord Advice
Units or houses?  Why not both?  There are some who swear that units are a stronger investment and there are others who say that nothing is safer than houses.

The answer to what is better for the individual comes down to their personal motivation for purchasing. There are, of course other considerations such as length of investment as the exterior of a complex of units does not need the upkeep that a typical house requires.

A house will typically offer an investor many more options than a unit will.  For example, adding a deck or bedroom or perhaps enclosing the carport and making it a garage will increase both the capital value and rent yield. For the most part this is an option with houses, but for units not so much.
 
 

Houses come on sections also which means there is the added advantage of subdivides, extensions and rezoning. These types of investment simply are not an option when it comes to the typical unit investment. Sure, they come with higher risk, or is it that you simply need to do a little more research before you purchase?

Investing in a property where capital outlay is required requires more time and energy than a standard unit that does not require any work. The other consideration of course is demand.  Typically a rental unit returns a lower yield than that of a house and the demand from tenants for a unit is greater than for a house (in some areas).

The capital value of a unit can be held back when a similar unit in the same block gets sold cheaply by a highly motivated vendor.  Likewise, there tends to be more turnover with units than there is with houses. If higher returns are achieved in the group of units, then the flow on affect to others is very positive.

When deciding if a unit or a house is a better investment, the answer is not straight forward given the diverse range of considerations.  An experienced property manager can always help you to to decide which way to go, given their broad range of experience in establishing returns and capital increase.

5 Comments

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jemmy says ...
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Ces motivations d'achat sont relativement stables. Bien sûr, certains motifs psychologiques sont également impulsifs, tels que la motivation émotionnelle. Ce type de changement émotionnel est conforme à la psychologie de la consommation personnelle, mais dans l'épidémie de consommateurs, la force motrice pour l'achat de biens va subir de nouveaux changements. Si parfois il n'y a pas besoin de consommation. Mais voir des produits de mode a également rejoint les rangs des acheteurs, créant ainsi une force d’achat aveugle pour les produits populaires. replique montre Ce nouveau moteur d’achat peut être utilisé pour acquérir spécifiquement des motivations psychologiques, telles que la recherche de nouvelles idées, la recherche de la beauté, la recherche de noms et le suivi des motivations psychologiques.
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