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Is it better to buy a house or an apartment ?

Hi,
I want to buy to invest: is it safer to buy house or apartment ?
Thanks
  • February 04 2014 - Arcadia Heights
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Answers (7)

 It depends on your circumstances and the particular market you are considering the purchase in. However, as a rule of thumb, homes are probably fairly valued in a city when they cost about 15 times a year's rent. The longer you plan on staying in the home the more appealing ownership can be. Choosing to buy a home or to rent is a highly personal financial and life decision that many people struggle with. 
  • September 14 2014
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no one made the fair  comparison ...some apa landlords wanted to sell apa  for X value  money ..the rent of this apa = 500 $ average .. Now the apa landlord take 560$ monthly maintenace fees including insurance ,carbage..etc 

I cant understand that why I should purchase this apa ..if I rent it I pay 500 and if purchase it pay 560!!!..

so no one should buy apa with high maintenace fees ..and should his original X mony in other project or put them in bank ...can any one solve this equation 

moma3175@yahoo.com ..
  • September 14 2014
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As an investment, houses appreciate more and theres more demand from a resale perspective. So for a long term play you are more likely to have a higher RO (return on investment) with a house. However, you will have more repairs to shoulder. With a condo or apartment, theres less maintenance and you can find something with a low HOA. You can sometimes buy short sale condos for very little and cashflow more (sometimes) than you would on a home. So it depends on if you are going after cashflow or appreciation. You should never by solely on appreciation though, your investment should be otherwise sound as well in terms of: amount of equity you are walking into (buying below market value), cashflow, potential liability, etc.

If you found my answer to be helpful please rate it as best answer, thank you!
  • March 13 2014
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If you are considering a condo, be sure to look into the Bylaws, Rules & Regs of the association BEFORE you buy.  Many do not allow rentals in their buildings, so while you may think you are buying if for an investment to rent, you may be prevented from doing so. 

Location is key for whatever you buy for an investment.  Also determine what $$ you need to keep up your investment and see if that area is bringing in comparable rents that will enable you to afford it.  Do not over improve on something that is not in an area that will bring you the money you need to keep it. 

Good luck! 

  • February 04 2014
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It depends on if you are buying to invest AND moving in, or renting the home out to a tenant. If you are moving in, then it could go either way depending on the real estate market in your area.

When the real estate market dips, condominiums tend to decrease in value more so than houses. I would ask a local Real Estate Agent how houses fare as opposed to condominiums when the economy is struggling.

If you are investing and renting out, then I would recommend a condominium because houses require a lot of maintenance which is costly and time consuming. Check out the Condo fees and break down what the fees pay for; you just may find that the fees are a value. Larger complexes tend to have lower fees because the tradespeople have large accounts with the Association for a smaller fee.

 Condominium Associations with swimming pools, tennis, clubhouses can get expensive due to insurance and upkeep.

 Good luck!
  • February 04 2014
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Sheri said it right, it depends on your situation and the trade offs you're willing to give. Remember that real estate is about three things: location, location, location. Prices being equal and cost being equal, I would suggest you buy the best location for the long term, taking into consideration schools, nearby employment (jobs, job growth and type of job) and amenities (near parks, public transport, shopping & dining etc). With the macro fundamentals being correct, then you can look to the specific neighborhood and property type to see what fits you best.

When you invest, don't forget to budget for these items, who pays what utilities (may be a state requirement that owner pays water for example), turnover & maintenance, vacancy, management/leasing, HOA type fees, permits, legal, accounting, and interest expenses.

Best luck in your investments.

This is not legal advice.
  • February 04 2014
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It depends on your situation.  Would an apartment/condo suit your needs better?  Or would a home that needs upkeep with yard be what you want?  Most apartment/condos you would not have to take care of the exterior and grounds.  But a home you would have to maintain the exterior as well as the interior.  Also, with an apartment, you will most likely have homeowner association dues.
I hope this helps.  Good luck!
  • February 04 2014
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