Real estate property investing is still the most reliable, stable, and profitable investment option. Brisbane apartments are favoured by real estate investors over house and land packages. Apartment rentals provide investors with consistent cash inflow, realising profits without waiting for the property to appreciate in value. Unlike other real estate property investments where you will have to hold the property until the value increases, thus delaying profit realisation.
Advantages of Investing with Apartments
Investing in apartments is ideal for first time real estate investors. Apartments have recently been outperforming townhouse and separate houses in terms of investment growth and returns. Here are the some of the reasons to invest in apartments;
Easier to Rent-out
There is a huge demand for apartment rentals. Renters favour apartments over separate houses or townhouses for many reasons, including;
Ø Location – Apartments the best locations. They are strategically located to be near business centres, city amenities, and facilities. City renters prefer living near everything, where they can walk to work or school, eliminating the need and expense of commuting.
Ø Amenities – Most Brisbane apartments come with in-house facilities like swimming pools, fitness centres, secured parking, and recreational rooms.
Ø Right Sized – Apartment renters are usually young people or new couples starting out on their own. They are mostly looking for the basic housing conveniences – a bedroom or two, a bathroom, small kitchen, and a living area.
Ø Security – Apartments are secured with locked or manned front door, secure access, security cameras, and personnel. This level of security is not possible in a separate house, without extensive expenses.
Easier to Manage
Most Brisbane apartments are managed by its body corporate. Owners do not have to worry over typical rental concerns like leaking roof or burst pipes. In most cases, it is also the apartment managers who directly deal with the tenants.
Apartments are generally more affordable than separate houses. Investors can start investing earlier with apartments. With the lower price tags, investors are also able to leverage on their money, invest on several properties and create a better cashflow.
Attracts Smaller Families
Apartment renters and dwellers tend to be adults or the elderly, living alone or a couple, working or retired. This demography are the stable earners, have higher disposable income, and are less fussy compared to young and growing families with children.
Easier to Sell
Because they are cheaper, they are also faster to offload. Liquidity is important to investors who wants better control of their money and to be able to grab better opportunities as they come.
Disadvantages of Investing with Apartments
Before putting your money on any investment, it is always advised to look into all possibilities, including the not-so-sunny parts, the risks. Apartment investing has its share of disadvantages;
Apartment value depreciates over time. Older apartments are priced lower than newer ones. Older buildings also need more repair and maintenance work, thus increasing owners’ expenses. However, this factor is irrelevant for quality apartments in prime locations.
Subject to Owner’s Corporation
Residents of the apartment are subject to the body corporate. Renters will be screened and will have to follow the established rules, thus limiting your rental market.
Newer apartments in the Area
There is always the possibility of another apartment – newer, more elegant, and with better facilities than yours. This will attract renters forcing you to either lower the rent or sell out.
Call us now for the most comprehensive listings of Brisbane apartments. We’ll help you find the best one suited for you and your real estate investing needs. We can also guide you through the gamut of apartment investing.