As a real estate agent Melbourne, GPYinson is experienced real estate agent in Apartment. A key benefit of apartment investing is its ability to generate cash flow, Tax and Deductions. in Apartment,. A key benefit of apartment investing is its ability to generate cash flow, Tax and Deductions.
Apartment investing is popular since it’s often more affordable than investing in a house. Cost aside, there are many other benefits to investing in an apartment.
Due to the compact nature of apartments and lack of back or front yards, apartments require much less maintenance than other property types. In apartment blocks, body corporate fees are paid by tenants to look after the communal areas of the apartment building, such as stairwells, walkways and outdoor areas. This means everything is taken care of by an external company.
Increased Cash Flow
Renting out your apartment can provide you with cash flow from the rental income.
Many new apartment buildings, particularly in the metropolitan areas, come with amenities available to the occupier, such as pools, gyms, spas, saunas, tennis courts, etc. If you were buying a house, you would need to purchase these things separately – or at least be a member of a club that provides them – which can add to your costs.
Inovayt Financial Planner Luke Mase says: “When it comes to rental yields, they generally fall in favour of apartments. The initial deposit, loan repayments and ongoing costs – such as council rates and insurance – for an apartment is much less than for a house that would attract similar rent.”
Unlike houses or townhouses, apartments are generally more secure than other types of property due to the layers of security in place to get you through to your front door. Things like key fobs in the lift to access your floor, security cameras in the complex and remote-controlled entrances to secure parking are all common features of apartment living.