Real estate investment is an attractive proposition, but knowing what the better investment is between an apartment or a house is like knowing the difference between buying a stock or investing in cryptocurrency—an extremely foreign language to many.
Should you go for a house or an apartment? Both have their pros and cons that should be weighed up when deciding on the best investment option for your goals.
If you’re looking into apartments as a real estate investment, then consider the pros and cons. Apartments can be eye candy for tenants and we’ll tell you why.
- More availability for tenants – Apartment buildings are usually bigger, which means that there’s more of a chance to find tenants quickly as the availability can be endless.
- Easier to find tenants – People tend to rent apartments more often than houses, so finding new tenants won’t be too hard.
- Lower maintenance costs – Apartment buildings typically have lower maintenance than homes due to the fact that all of the units under one roof can be serviced at once.
- More expensive to buy upfront – The buildings are usually more expensive compared to buying a single-family home.
- Higher management fees – Apartments often require professional property management and that comes with a cost.
- Different taxes – They often come with different tax codes than houses, so be sure to check them out before you decide on an investment.
As for houses, this real estate investment has a different set of pros and cons. Houses typically involve lower management fees and can charge more for rent but have their own sets of cons.
- Lower management fees – As the landlord, you won’t have to pay as much for managing a house compared to an apartment building.
- Can charge more for rent – Due to higher square footage, you can usually ask for a higher monthly rent payment on houses than apartments.
- Lower upfront costs – Houses are typically cheaper upfront when purchased compared to apartment buildings.
- Only one tenant (or family) at a time – This also goes hand-in-hand with the rent payment being higher due to only having one tenant/family in the home at once.
- More grounds upkeep – Houses will require more maintenance than an apartment building, so you need to factor that into your budgeting.
- No partial vacancies – If the house is empty for a certain period of time, then you won’t get any income from it until it’s rented out again.
Amanica Realty is Your One Stop Shop for Realty Solutions
When it comes to real estate investment, Amanica realty is the one-stop shop you can rely on. Amanica realty offers a wide range of services and resources that can help you make the right decision for your personal or business needs. We provide full-service solutions that include everything from market analysis and appraisals to mortgage assistance and legal advice. Not to mention our access to exclusive listings that can’t be found anywhere else, so you get the best value on the market.