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Are apartments more risky than houses?

By Staff Reporter
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Simon Pressley, Propertyology

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Risks associated with buying into apartment markets - there's really no greater risk in apartment buying than there is detached dwellings or houses. There can be good areas for investing in apartments and good areas for investing in houses. What's important, I think, for locations where there's a lot of apartments is just to be mindful of the zoning in that area. Look up at the sky and see how many stories they can go up to. It's possible to have an over supplied apartment market, either at the time of investing or in the near term, but the same thing can occur when you're investing in houses as well if you're getting too far out of town and you're getting into green field locations. So avoiding over supply is important. If you're going to invest in apartments the specific complex is worth considering as well. We particularly avoid large complexes with anymore than about 20 - 30 apartments in that on complex, and we look for low maintenance complexes. So try to avoid things such as swimming pools, lots of lifts, etc. because these become big capital expenditure items.

Listen to other instalments of The Smart Property Investment Show:
Episode 60: The pros of using a buyer's agent: why this investor brought someone in
Episode 59: How to invest in property as a team: two investors share their secrets
Episode 58: When do you stop investing? The SPI Show answers more listener questions
Episode 57: Wealth creation through property: trends and themes to think about in 2017
Episode 56: The SPI Show accountant reveals all: How to pick your financial team
Episode 55: The reluctant property investor: How necessity drove an 18-property portfolio
Episode 54: The SPI Show Q&A: Listener questions answered honestly
Episode 53: 6 properties in 2 years: how this investor is achieving his goals
Episode 52: Will property prices fall? When? And by how much? What investors need to know
Episode 51: SPECIAL EPISODE: SPI team reveals all the financial details of its portfolio
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