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Are apartments more risky than houses?

By Staff Reporter

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 94: BONUS EPISODE: From 1 to 28 properties – what's his secret?
Episode 93: 28 properties and an $11.5 million portfolio – how this investor did it
Episode 92: BONUS EPISODE: Investor reveals top tips for better property management
Episode 91: Why being 'pedantic' about property will enable this investor to be debt-free by 45
Episode 90: Portfolio update: SPI gives the inside scoop on its latest property purchase
Episode 89: Renovating as a couple: two young investors share their story
Episode 88: Everything you want to know about the short-term rental market revealed
Episode 87: BONUS EPISODE: Former Olympian shares his property development know-how
Episode 86: How a former Olympian found new sport in property development: Ed Fernon's success story
Episode 85: Q&A session with Paul Glossop – more questions answered!
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Are apartments more risky than houses?
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