Apartment or house?

windmilllane

We are in process of buying investment property. Have seen a 3 bed apartment we love and a 2 bed house we aren't so in mad about with but with redecoration will be lovely. Similar areas, 2 bed slightly cheaper. Thinking houses are better option what do you think?

Gumbo

windmilllane wrote: »

We are in process of buying investment property. Have seen a 3 bed apartment we love and a 2 bed house we aren't so in mad about with but with redecoration will be lovely. Similar areas, 2 bed slightly cheaper. Thinking houses are better option what do you think?

It’s an investment property, so buy with your head and not your heart.
Do the sums on each one accounting for income and outgoings including management fees etc

See which one has the best potential.

4ensic15

House will always appreciate more in value than apartments. there will be no service charge. Smaller units tend to be easier to let and manage. If the location is similar, then no contest.

EvolvedApe

It depends on your price bracket and location surely..

ted1

For an investment go with the apartment. It’ll save you any hassle with gardens and building maintenance.

All you need to do is paint the walls and change the floor every few years.

dubrov

4ensic15 wrote:

House will always appreciate more in value than apartments.

Compare the appreciation on an apartment in Grand Canal Dock in Dublin to a house in North Tipperary (or even most of the rest of Dublin for less extreme examples) and you'll see that statement is patently untrue

Samuel T. Cogley

windmilllane wrote: »

We are in process of buying investment property. Have seen a 3 bed apartment we love and a 2 bed house we aren't so in mad about with but with redecoration will be lovely. Similar areas, 2 bed slightly cheaper. Thinking houses are better option what do you think?

Why limit your investment to house or an apartment? Anecdotally commercial property seems a better bet, you've REITs, and all sorts of other investments. Frankly unless you've taken independent financial advice I think it's foolish to invest in single properties with the current regulatory back drop; and you know what they say about fools and their money!

dubrov

OP for an investment property it is all about return.

Apartments have the additional cost of management fees over house but this is tax deductible.

dubrov

Returns are higher on commercial property but the risk can also be much greater. If you buy in a fairly decent location, if there is a downturn, on a residential property you might take a hit of 10/20/30% on the rental income. On a commercial property you mightn't be able to rent it at all and would still be liable for rates