Investing in property is one of the best types of investments. Because it cannot be denied that property prices tend to increase from year to year. The question is, is it better to invest in a house or an apartment? Because both have their advantages and disadvantages. To answer that, let's take a look at the advantages and disadvantages of investing before buying a house or an apartment in the following review.
When talking about the advantages of investing in a house, many can be mentioned. One of them is that a house has a significant capital gain. The selling price of a house will experience a considerable increase when you sell it again. This makes buying a house a safe investment choice, especially if you intend to invest for a long period.
The price of landed houses continues to increase every year, especially in big cities, so its value increases when resold. The investment value also increases if the property is located in a city integrated with infrastructure and access, which can better answer the question of whether to invest in a house or an apartment. Moreover, a house is suitable for use as collateral with a significant value.
Despite having many advantages, investing in a house also comes with several disadvantages. One of the disadvantages of investing in a house is that when you choose to rent out the house, you may have to settle for a rental price that is relatively lower than the rental price of an apartment. Although the rental price is determined by several aspects, such as land area, building area, and other supporting factors.
You also need to maintain and renovate the house if you do not want its resale value to decrease. It should be noted that buildings can experience depreciation of up to 10 percent per year. Additionally, you may need to pay environmental fees for security and cleanliness.
Before investing in a house, first, you need to look for a strategic location, as it greatly influences the value of the house. It is also advisable for individuals with limited experience in real estate transactions to buy property from a well-established developer.
Besides being safer, buying a house through a developer allows you to gain multiplied investment benefits. But don't forget to consider your budget, as the main goal of investment is to empower passive income. So, make sure that investment doesn't become a financial burden for you.
Just like investing in a house, investing in an apartment also has its advantages. Such as high rental and resale prices, which are much higher than houses. This is because apartments are considered more modern, private, and generally located in busy areas. Because of the high rental prices, apartments can certainly be a promising source of passive income.
Moreover, you can rent them out with a more flexible system, ranging from yearly, monthly, weekly, to even daily. This can certainly be the basis for considering whether investing in a house or an apartment is better. Additionally, apartment developers usually provide complete facilities that can pamper their residents.
As for its disadvantages, investing in an apartment means you cannot increase the building's area. So, what you have purchased is what you will get. Even if you have a higher budget to make the apartment larger, you cannot expand it vertically or horizontally.
Additionally, it should be noted that the routine costs of an apartment can be higher than those of a house, and its value can also be lower if you use it as collateral for credit. If issues like pipe leaks from other units occur, your apartment might also be affected.
Rental value and resale value (capital gain) are two things to consider when deciding to invest in an apartment. Because apartment prices tend to remain stable, as the availability of new apartments is relatively slow. If developers can offer rental and unit purchase guarantee schemes, this will be more beneficial.
Lifestyle trends in the area you are targeting can be a consideration in choosing between investing in a house or an apartment. If the area is a business center, shopping hub, and has many offices, perhaps an apartment could be an ideal choice. However, if the area is dominated by houses, then a house is the answer.
Considerations in choosing between investing in a house or an apartment should be based on your profile as an investor, whether you want to make short-term or long-term investments. For short to medium-term investments, apartments are the answer because they offer maximum yield for a short period. Meanwhile, houses with relatively stable prices are good for long-term investments.
How much responsibility you want can also be one of the basic considerations to determine whether investing in a house or an apartment is better. Because as the owner of an apartment unit, management will assist in repairs and maintenance. Meanwhile, a house is entirely the owner's responsibility.
In essence, investing in houses and apartments are both good and promising. However, which one is better depends on the business profile of each investor. You can consider the reviews above and see which one suits your profile better. With that, of course, you will be helped in making the right decision.
Damai Putra Group, as the best property developer in Indonesia, provides a variety of the best property investment instruments ranging from housing to apartments with complete facilities and strategic locations. Contact Damai Putra Group Sales to find your dream property and profitable investment here!
