If you’re planning to buy a property, which is one of the best investment decisions you can make, the question arises whether to buy a house or an apartment. Understandably, there are advantages and disadvantages to each type of property, and ultimately, it’s a personal decision you’ll have to make. There’s also the question of whether you’re buying the house to live in or to buy it as an investment, as these two aspects can have a major impact on the decisions you make.
Buying a house and acquiring property
Freehold means you are the sole owner of the property and the land it stands on. So, when you buy a house, you usually have a leasehold, meaning you’re the landlord and can stay there forever, passing it on to future generations of your family, etc. So, owning a house is definitely a powerful move, and it’s also one of the biggest benefits of homeownership.
There is no real disadvantage to owning a house because you can do whatever you want with the land.
Buying an apartment for value appreciation
Apartments are real assets. When you buy an apartment , you own real assets, and you benefit from a number of advantages. For example, if you choose a good apartment and a good location, the apartment will be more expensive in the future.
Another thing to know about apartments is the so-called multiplier effect, meaning that when the rent increases, the value of the apartment increases. If you want to take the next step and invest in real estate like a true professional, then you need a solid «why.» You need a reason to buy a certain class of asset, and if you want to own a property whose value increases over time, then buying an apartment is certainly in your best interest.
The real estate agent will speak out in favor of the apartment
If you ask around, you’ll learn that apartments are the best investment ever. If you ask any real estate agent , chances are they’ll tell you that an apartment passes a series of tests that are crucial to ensuring you don’t have to worry about whether or not you’ll make money on a deal.
Apartments can help you achieve positive cash flow, provided you buy the right apartment. Positive cash flow is the holy grail of finance, a concept that very few people fully understand. You have to remember that cash flow increases the value of the apartment because you can keep it for the long term, and it provides you with security.
Final considerations
If you’re unsure whether to buy a house or an apartment, you should know that the final decision is yours. Unlike a house, when you buy an apartment, you typically acquire a leasehold that can last up to 100 years. The investment depends on the area where you buy the property. Depending on the neighborhood, the value of an apartment or house can increase, but it can also decrease if the neighborhood loses value.
