Should I Buy a House or Unit For My First Home?
If you do decide to enter the market now, how do you choose between a house and an apartment?
Your budget will dictate your choice to some extent, but there are always surprises in store for those who do the groundwork. A three-bedroom house in a regional area may end up being a much better opportunity for you to invest in, than a small inner-city apartment. Similarly, a spacious apartment a little out of the city may serve your plans better, compared with committing to a huge mortgage for a house that offers more space than you need. It all comes down to budget, location and your own personal investment goals.
The investment potential of the property you choose is an important part of the equation and your choice here will really be influenced by what your long-term property investment goals are. In the case of an apartment, the bulk of the growth potential may be in the building itself, rather than the small piece of land it sits on. When purchasing a house, the land itself becomes the greater part of the asset in many cases, however so much more can be done with the property that improves your capital growth options as well. Remember, your investment portfolio can grow beyond just this property and diversity is key to future success. A strong portfolio will ideally have a diverse mixture of houses and apartments, so you can always go the other way with your next investment.