House or Apartment: What’s your best choice for Australian Property Investment?

Life’s full of choices.

From decisions as simple as what to eat for breakfast, to as complex as how to configure your financial investments.

No matter the decision we face, it’s always important to consider the positives and negatives. Weighing up our choice – putting it into perspective alongside our specific situation and goals allows us to be confident that we’re doing what’s right.

If you’re struggling to figure out what to have for breakfast – maybe porridge or cereal, your unique circumstances that day will inherently impact that decision. If you know it’s a chilly morning outside, it might suggest to you that you should choose the porridge.

See, it’s all about identifying and understanding what’s right for you.

You might be thinking, ‘What on earth does my breakfast have to do with property?!’…

But you’d be surprised!

A common decision for investors across Australia is choosing whether to purchase a HOUSE or an APARTMENT.

Much like choosing what’s for breakfast, it’s important to consider your options relative to what works best for you – albeit slightly more important.

So, if you’re wondering what’s the best option for you as a property investor in 2024, keep reading, because we’re going to dive into what makes each investment option a good (and not so good idea)!

Houses

At the end of the day – and if you know us at all – we always say that investment is all about your long term goals.

And do you know what is the optimal safeguard for long-term financial gain? It’s one of the most common and well-liked aspects in the world of property.

It’s LAND!

Buying a house almost certainly guarantees that you can stake claim to your own piece of land. A block that in most circumstances will allow you to do what you want with it, whilst appreciating in value as scarcity increases. If you’ve checked out our previous blog on supply and demand (click here), you’d be all over the fact that surging demand causes prices to rise, especially when the supply (new property) drops off.

Over the past couple of years in particular, we’ve seen land prices soar in growing areas. With great infrastructure and public spaces, the locations we’ve found for our clients to purchase have already shone through in less than 18 months. We recently received some amazing news surrounding a New South Wales property, where in late 2022, our clients secured a house and land package for $610,000. Fast forward to now, a recent valuation has just come in at $720,000. $110,000 in equity uplift.

It’s great news – and just one example of some great results our clients have been seeing. To me, it just highlights the benefit of good quality land and houses.

At the same time, houses built on quality land are inherently worth more. So, this is where the importance of understanding your goals and situation comes in. What’s your budget? How do your long term property goals look?

Apartments

Apartments are really great – we’re lucky enough here in South-East Queensland to have some of the most amazing views and locations, and we love the apartment lifestyle. Our recent trips to Melbourne, Perth and Sydney also highlighted some of the amazing opportunities in the area. WIth apartments, lifestyle is key – and for lots of people, this is the way to go. With new apartments going up in beautiful areas, with close proximity to parks, gardens, hospitals and beaches, the long term value speaks for itself.

Because of their smaller size and lack of land value, apartments allow you to get more bang for your buck. From a strategic perspective, purchasing an apartment can be an excellent way of jumping into the property market, allowing you to find your feet and build up a stable and successful portfolio. They’re also a great diversification option for experienced property investors.

Ultimately, it all tends to come down to what’s right for you. With established investors, we lean towards recommending a house option, due to that idea that land is what wins in the long term. BUT, don’t discount the great opportunities that are out there with apartments. Location, amenities and infrastructure is what counts here, and with the growth and demand of suburban and inner-city locations only growing, there is some amazing potential.

At Propell, we completely understand that there is no one-size-fits-all approach to property investment. Our Research and Acquisitions Teams work hand in hand with you to ensure your tailored plan is executed to perfection.

Interested in learning more about how we can help you achieve financial freedom?

Reach out HERE, or give us a call on 1300 776 735, we’d love to help!