If you have money to invest in property then you need some direction. Deciding on what type of property you want to buy can be difficult. There are many things to think about before you buy. Who will be living in the property? What are their unique needs? How much space will you need?
For a long time, the myth has been that buying a house rather than an apartment is a better investment. People tend to believe that because a house has more space than an apartment that it is worth more money. That is just not true. There are many financial advantages to buying an apartment. Few people realise that an apartment can make them a huge profit, whilst costing them less money to maintain than a house. Here is why it pays to buy an apartment rather than a house.
Few Upfront Costs
Apartments are cheaper to buy than houses. That doesn’t mean that they are worth less money to you as a buyer though. There are many ways you could make a large profit when you buy an apartment. You may want to buy an apartment to refurbish so that you can sell it on for more money. Buying an apartment rather than a house means that you have less to pay in the first instance. That gives you more cash to spend on the refurbishment. Estate agents in Fishponds recently noticed a trend whereby buyers were buying apartments. These buyers are looking to make a quick profit by selling the apartments on within the next year.
Cheap Electricity Bills
If you are buying a property to move into yourself then, there are many reasons to opt for an apartment. Apartments are smaller than houses, meaning that it will cost less to heat your apartment. Also, the fact that the apartment is in a big building means that the walls of your property will be better insulated. You will not need to spend much money on keeping your home warm throughout the winter. If you live high up in the block then, the heat from lower apartments will rise and keep you nice and warm. Electricity will also be cheaper. Less room in the property means that you will use less electricity. Using less electricity could cut a huge chunk out of your living costs.
You will also find that much of the time apartments are newer than the houses on the market. The fact that the property you buy is newer means that it will be more energy efficient. You will save money on all your household bills if your home is energy efficient.
Many Renting Opportunities
Another way in which you can make money from your investment is to consider renting out your property. Renting is a viable way to make a lot of money. You will make monthly profits from your property meaning that you can use the rent as an extra income source. Houses tend to rent for less money than apartments. There are many reasons that an apartment will rent for more money. Family’s, who need homes, tend to buy them and invest in a mortgage of their own. The main people who rent are young professionals, students and single people. These people prize location over space. The fact that renters are looking for a good location means it doesn’t matter how much space it has.
When you invest in an apartment, you can ask high rent prices from your tenants, which will make you a steady income. Few people realise that they can rent out a property, rather than just selling up. In fact, if you decide to rent out your property you could make far more money from it in the long-run.