(Need expert advise please) Which one is a better investment? Let say I have a chunk of cash, and I want to buy a property for rent + I will pay off the mortgage in one shot, so I will not borrow any $ from the bank. Is buying an apartment/condo or a house better for income? what are some advantages and disadvantages.
2006-12-30 10:30:18 · 11 answers · asked by itguru5354 1 in Business & Finance ➔ Renting & Real Estate
I have had both and personally I would prefer an apartment. True I don't have any equity to borrow against but then I don't have any responsibilties toward the house either.
I would suggest buying a duplex and renting out oneside while living in the other.
Of coure if it is true that you can payoff the house in oneshout then definitely buy not rent.
2006-12-30 10:34:03 · answer #1 · answered by me2 5 · 0⤊ 0⤋
House
2016-05-22 22:04:08 · answer #2 · answered by ? 4 · 0⤊ 0⤋
The advantages of renting an apt are 1. No mortages or taxes to pay. No yard work, including raking of leaves. There's always an opportunity in summer and early fall, to attend a potluck or party.
The disadvantages are- you can't do anything to the place, with out asking for permsion and rent is always very high. Also you need quarters in order to do your laundry. The advantages of buying a house are- no rent to pay, except when it's a mobile home or manufactored house, in a home park, you can have a garden if you want to. You can paint it, if you want to. You can resell it at some point, if you want to. The disadvantages- as immediate owner, you have to pay yearly taxes, you have to rake leaves, fix up the place if it needs it (and it might). But in the long haul, owing a house is better, than renting an apartment.
2006-12-30 10:44:01 · answer #3 · answered by Anonymous · 1⤊ 0⤋
One thing to be aware of, many condo units do not allow sub-lets. Some Home owners assoc do not allow for rental either. Check out both on the investment property.
House has a better chance of making money when you do decide to sell. However house has higher maintance cost as you will absorb all maintance cost, must monitor renters, pay ulit if not rented, etc.
Some condo's who allow sub-leting may or may not have on site maintance crews, they will for at least the common land/ lawn.
If you have extra time to invest in the project, go with house as in the long run it will be a better risk investment. If you can not invest the time and need to hire a protery manger - consider the cost also.
2006-12-30 10:43:19 · answer #4 · answered by Carl P 7 · 0⤊ 0⤋
It would depend on the location of the properties.
In the past year, many investors in my area have started building apartment buildings. Houses that have been here since I can remember are being torn down and apartments are being put up.
Of course, it would also depend on the people you would rent to. Can you be sure that they are going to pay the rent every month? Are you going to be able to up keep the house or the apartments? Which one is going to be the most cost effective?
I hope I could get you in the right direction. Good Luck
2006-12-30 10:41:20 · answer #5 · answered by Lynda C 3 · 0⤊ 0⤋
I would imagine you could charge more rent for a house. You could also maybe increase the clientelle with a house too (i.e. an apartment might attract young professionals only, whilst a house may attract young professionals or families or older people or young couples etc). With a house, you can carry out repairs/modifications without disturbing the neighbours.
Hope this helps a little. A house might also have some outdoor space, which when you are reselling might also add to your investment by improving the profit you make.
2006-12-30 10:35:36 · answer #6 · answered by Anonymous · 2⤊ 0⤋
For investment purposes, a condo is better because they're easier to rent out and usually have some type of HOA that regulates the structural integrity while maintaining the premises.
Regards
2006-12-30 10:40:00 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I think you probably need to take a step back and look at your financial planning.
If you buy one property and pay cash for it, you will earn some equity in one property plus get rental income.
If you buy five properties and have your tenants rental income make the payments on them, you'll earn equity in five properties. When you sell them, you'll most likely come out ahead.
2006-12-30 10:35:26 · answer #8 · answered by xtral8 3 · 1⤊ 0⤋
I've lived in both and though it may save you money and if you're in the right area they are nice; if you like you're privacy or are a light sleeper, house! Though you still have neibhors your walls are connected and paper thin! or you're on bottom/top of some neibhors who could be really rude and rousy.
2006-12-30 10:33:12 · answer #9 · answered by xboxxlover101 1 · 0⤊ 0⤋
apartment
2006-12-30 10:32:31 · answer #10 · answered by ? 7 · 0⤊ 0⤋