To help you make your decision, we’ve summarised some key advantages and disadvantages of both property investment options.
An apartment is a self-contained dwelling that resides within a larger structure known as an apartment building. This means that multiple residents and/or tenants live together within the one building.
Easy to maintain
In an apartment building, you only have to look after your individual apartment (which is already compact in size). A strata manager looks after the building itself, meaning you can take advantage of its facilities without the upkeep.
Save money by purchasing ‘off the plan’
Many developers sell apartments before they’ve been built, offering lower prices and financial incentives to entice buyers from the outset.
Get a brand new apartment
Perth has seen apartment developments explode in recent years in response to increased demand for inner city living. Buying new, you’ll benefit from warranty-backed appliances and fixtures.
Make use of a large block
If you’ve got the square meterage, an apartment development will help you maximise the amount of dwellings you can build, opening the door to higher returns.
City-based developments are highly sought after for a good reason – higher demand, higher returns. If you’re considering building apartments, locations with good transport and facilities are attractive to prospective tenants/buyers.
Everything has to go through strata
Because your apartment building is strata titled, some changes and renovations may need to go through an approval process with the Strata Owners Corporation.
The downside of compact, low maintenance living is you trade greenery for more leisure time. If you like having your own private garden to relax in, an apartment may not be the best option for you.
Close quarters to noisy neighbours
You can choose your friends, but not your neighbours! Living in close quarters with others is often not an issue, it is that much closer when living in an apartment.
More dwellings = more maintenance
Apartment complexes allow you to build more dwellings on less land. And while this means less work for the tenant, it increases the volume of repairs and maintenance for owners.
Look around at all the apartment buildings going up around Perth – there’s a lot. While you can’t fully predict how the market will evolve, be aware that oversupply can affect growth rates.
A townhouse design is a form of terraced housing, characterised by shared wall/s, a small footprint and multiple floors.
More space than apartments
Many developers choose to develop townhouse designs in prime locations, meaning you can enjoy all the benefits of modern living from a more traditional style home.
With the increased likelihood of outdoor areas, townhouse developments are generally more attractive to families looking for more space. This is usually desirable for landlords, as families often seek rentals on long-term leases.
Take advantage of narrow lots
Thanks to their slender footprint, townhouse plans allow developers to optimise the available space in what would otherwise be awkward, narrow lots.
Generates less income than apartments
Less homes, less income. While townhouses can attract a higher rental figure per dwelling, the greater number of dwellings overall in apartment buildings means they will likely generate more than a townhouse development.
They’ll analyse your lot and help walk you through your options for apartment and townhouse floor plans, then develop an apartment or townhouse design that’s right for you and maximises returns.
Disclaimer: The information within this article is general information only and it does not constitute advice or recommendation. It does not take into account your financial situation, investment objectives or personal circumstances. Before making a decision about developing your property, you should seek independent financial, legal and taxation advice.