Not so long ago there was a belief that it was better to invest in a house or duplex rather than an apartment. The reason being the value of the investment was perceived to be in the land, so investors focused on buying houses where the land value would appreciate for years to come. However, with the rapidly increasing population, a growing trend of people preferring to live in apartments close to infrastructure and offering great facilities, plus the high cost of buying real estate, apartments are increasing in popularity and proving to be a high performing investment choice.
Here’s a deep dive into some of the key benefits of buying an apartment and some points to consider when making your selection.
Apartments offer an affordable entry point for first time investors. The lower outlay means fewer risks and more investment choices. It also gives investors who are cashed up the opportunity to buy multiple apartments, enabling them to create a diversified portfolio and spread their risk. We buy homes Knoxville
Mass buyer appeal
Apartments are also popular for a wide range for buyers – for first time buyers, downsizers and other investors. So when it’s time to sell your investment, your buying audience is broader, giving you more opportunity to appeal to the mass market which creates competition for your property and drives the price higher.
Another advantage of owning a unit is that everyone shares the cost of building repairs, maintenance and building insurance. Keep in mind the more facilities and amenities your building has the higher the fees. But with this also comes greater potential for higher future value and the opportunity to increase your rent.