What kind of investment property suits you?
Mon February 17, 2014
Most people get into property investment in order to earn wealth for themselves and their family. If you're considering purchasing an investment property in Sydney, there are a number of different things to investigate before committing to any one option.
For example, a major question to ask yourself is this: what kind of property do I want to purchase, an apartment or a house?
Depending on your answers, you could have a very different investment experience to someone else. Basically, the type of property you choose to invest in has a lot to do with what your long term property goals are, and the type of income you want to earn.
Purchasing property in the very heart of the city is a great way to ensure you have a consistently high demand from potential tenants. It could be worth considering an apartment for a number of reasons.
While apartments tend to undergo fewer capital gains over a period of time, the high demand often means you're at liberty to increase the rents as you see fit.
Rental yields will become your main source of income from units, and the constantly high need for accommodation in central business areas means you will always have a steady stream of tenants interested in your real estate.
On the other hand, detached homes tend to be further out in the city's suburbs. These often attract a different, long-term crowd. Due to this fact, the turnover will be less - giving you the opportunity to find a more permanent, reliable tenant to earn a rental yield.
However, detached homes are often held for a longer period of time in order to secure the best possible capital gains. As the value of the property begins to increase over time, so too will the eventual profitable return.
Your property goals will dictate the best type of property for you, so getting in contact with an investment expert could help you to create the best possible plan for you and your investment future.