Are apartments more risky than houses?
podcast

Are apartments more risky than houses?

By Staff Reporter

Simon Pressley, Propertyology

{{youtube id="_OcCfg5N_N4"}}

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 105: New podcast: Investor reveals the opportunities for migrants in Australia
Episode 104: New podcast: Q&A session with Paul Glossop – more questions answered!
Episode 103: Special Episode: Phil and Munzurul talk steering the growth and development of portfolios by managing cash flow
Episode 102: Investor reveals how to find the perfect property manager
Episode 101: From 12 to 100 properties – how this investor will achieve his goals
Episode 100: Property investor talks research, teamwork and balance in his portfolio
Episode 99: Portfolio update: SPI opens its books to reveal all the nitty-gritty details
Episode 98: Buyer's agent forecasts what’s to come for Aussie property market
Episode 97: ‘How we achieved financial security through property’ – the Property Twins reveal all
Episode 96: Tips for tackling pest and building inspections head-on
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BERKELEY VALE 46.03%
2.
EDGECLIFF 45.06%
3.
PAMBULA 43%
4.
EAST LISMORE 41.38%
5.
SOLDIERS POINT 37.89%
Are apartments more risky than houses?
SPI logo