Property investment is a perfect field for people who have patience and sufficient holding power, but it’s not the case every time. The above idea can work for wealthy investors, however, small investors can’t afford to specifically rely on property prices going up in the long term.
The property flippers and serious investors want every property in their portfolio to perform well. Our professional financial advisor in Melbourne will highlight some different types of properties in Australia to help you understand each of their characteristics and invest better.
There are two types of landed properties, house and unit. Usually, investors and home owners have to choose between them according to their future plans. Here are a few things to know before making an investment decision.
Houses with larger blocks of land are likely to grow better in the long run as compared to the single unit, which gets a relatively small percentage of common land. However, there are many other factors need to be considered before purchasing a house.
For example, a house with larger blocks is normally located far away from the central business district, which makes them affordable but a little less wanted. On the other hand, houses located in the inner cities have smaller lands as compared to the suburbs but they can be really expensive due to being in the prime location.
Units are normally located near to the CBD, major cities and amenities.
Though investing in property which has a larger land component may lower the risk for investors. However, it is important to pick a location where prices are expected to grow. Areas far from the CBD can have a slower capital growth.
Units: Townhouses and Semis
Townhouses usually consist 2 stories, with 3 bedrooms and a small courtyard. They are half of a size of the house with a good land. Townhouses are usually located near to CBDs and major transport hubs, thus holds a good property value.
As for semis, they have relatively larger structure than a townhouse. For example, if you cut a big house and divide it into 2 pieces, you get a 2 x 2 townhouse.
Units: Apartments and Condominiums
Apartments and condominiums consist of a number of units in a single building. They are popular among Australians as they are near to the CBDs, major transport hubs, and shopping centres. They are cheaper in price with low maintenance, modern security, and amenities provided in these projects make them attractive for new investors.
The commercial properties can be a viable option for you if you are looking for high rental returns and business dividends. Commercial properties are considered to be ideal for investment but with a catch. Since the investment is high, the risks are higher as compare to the residential properties. However, it may not be the best option for the first time investors.
If you are finding it challenging about which property type to invest in, consider getting professional advice from our reliable property advisor in Melbourne. Our experts can help you with developing ideal investment strategies that are safer and will give you higher returns.