Why Modern Apartments Are The Perfect And Preferred Real Estate Investment.

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The old adage ‘if you want to secure your financial future you need to invest your savings instead of letting them stagnate in a savings account’ still holds true. There are as we know many different investment options, but for good reason real estate remains one of the most secure and popular. 

Post Covid-19 and as we settle into the new slightly revised world, property prices will rise, making real estate a relatively safe investment that will likely increase in value. High property prices have always meant that fewer people are able to buy and there are more renters than ever, especially in Cape Town. Buying a property and renting it out has become a good way to bring in more income, and there’s always the option of selling if you need to cash out your investment. However, it’s important to remember that real estate investments are not a sure thing, and novice investors often make mistakes that damage the value of their returns. If you are new to real estate investing, this guide will help you to avoid some of the common pitfalls. 

Most people know that location is very important when finding a property, but you also need to consider the kind of property that you want to buy and the relative pros and cons of each. For example, will it be a family home, single-person apartment or holiday investment? Apartments are one option that people tend to overlook but they actually make a great investment option. If this is something that you are considering, these are some of the reasons why buying a modern apartment is likely smarter than a house. 

The Quality Of The Property 

When you buy an investment property, you need to decide how much work you are willing to put into it. You can buy a cheap property that requires a lot of work, but some people are looking for an easier option that is ready to move into. If you buy an executive condo or new-build apartment, the quality of the property will be higher with modern features and move-in ready. This makes it so much easier to find tenants. Trying to convince tenants to move into an old property that is riddled with issues is tough, and the wait to get those issues cut into your earning opportunity

Excellent Locations 

Most apartment complexes are located in the heart of bustling cities with excellent amenities. Although you won’t get much interest from families, young single people prioritise things like restaurants, bars, and easy access links when looking for a property. There is a high demand for city living, especially amongst young working professionals and students, which means that you have a lot more potential tenants. Although these tenants will not stay as long as a family that is looking for a more permanent home, it will be quick to replace them when they do move out. Of course, we can’t negate the fact that many people are now working from home, and would like to be in lovely surroundings that are in the hub of things, so as not to feel too isolated from the world.

Maintenance And Running Costs 

A lot of new landlords are surprised by the level of maintenance that a property requires as it needs to be in good shape before you can start showing it to tenants, and once somebody has moved in, you are responsible for the upkeep. The maintenance costs on a large house will be very high and that’ll eat into your profits, so you may find that your investment isn’t as lucrative as you might think. However, a new apartment will be in better condition to start with, which means that you are less likely to experience maintenance issues. An apartment is a much smaller space, which further reduces the chance of expensive repairs. In some apartment complexes, the common areas are handled by a maintenance team for a set levy fee, which is usually cheaper than performing routine maintenance yourself. This makes apartments more of a hands-off investment option. 

The general running costs of an apartment will be far lower as well. The utility bills in a house, especially an older property, can be very high. This is less of an issue for you if the tenants are paying utilities themselves but if you include them in the rent, which is an effective way to attract more tenants, it’s something to consider. Apartments are likely smaller with newer appliances such as hot water geysers, cheaper to run. 

More Amenities 

High-end apartment complexes often come with a lot of amenities that you don’t get in a house. Things like parking garages or bike storage lockers are often standard. This is a huge selling point – especially off-street parking. In high-end apartment buildings, you may even find a communal swimming pool or a gym. The level of amenities available varies between apartment complexes and you might pay more to get more, but can also charge higher rent, so it balances out. When you are trying to decide on an apartment complex, you should think about the kind of tenant that you are hoping to rent the property to. If you are looking for well off tenants that are more willing to pay for luxury, you should go all out on the amenities. 

Modern apartments are a great choice for property investors but they often get overlooked. If you are looking for a hands-off investment that doesn’t require much maintenance, they are perfect. You will also find that your maintenance and running costs are a lot lower, so even though you may spend more upfront, you will make some long term savings and increase your profits.

If you are looking for a property to invest in, make sure that you consider a modern apartment.

** Pics sourced on Pixabay and Pexels.

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