Investment Property Housing Type: Houses or Units?

Selecting houses for sale to be used as rental properties can be a tough decision to make, especially with all of the opportunities the real estate market and economy are producing for buyers.

But when it comes to actually choosing the type of property you'd like to invest in, buyers are spoiled for choice.

It's all down to that age old question - houses or units?

The type of property you select will ultimately depend on a number of factors. Price is one of the main points that may be factored into your decision.

Another important point is the location, as there may be a shortage of houses or units in the market you are looking in.

It's also depends on the type of investment you're looking for and whether it's something low maintenance.

If you're thinking about purchasing your first investment property in the near future, then here are some points you may want to consider.

Houses

Houses are a type of dwelling that can accommodate any type of tenant - from small families and flatting situations to retired couples.

Often they're located in suburban areas, as opposed to apartments and units, which are more commonly found in metropolitan markets.

Their versatility in the market provides a great advantage for investors, as it can lead to a wider selection of tenants.

However, there can be a degree of maintenance associated with the property.

Council rates can be high in comparison with units and apartments, while houses located on sections will need ongoing garden maintenance etc.

This type of dwelling offers owners the option to easily add value to it over time in order to obtain a better return on investment through substantial renovations.

This in contrast with the body corporate rules surrounding units and apartments, which may limit the type of work you can perform.

Units

Units and apartments are a great option for those looking for an easy-care and low maintenance investment.

Unlike houses, units and apartments aren't usually tied to a lawn or section.

At the same time, these types of dwellings are often smaller in size and therefore easier and cheaper to maintain.

Recent information from RP Data showed apartments and units are actually a lot cheaper to buy too, so they make a great option for investors or buyers entering the market for the first time.

In fact, the data showed that across the capital cities, units were $73,000 cheaper than houses, with Sydney recording double that amount.