Apartments versus townhomes

We are well into March and properties are still moving exceptionally quickly. Naturally, we get a lot of questions around what is the best property to buy, however, this ultimately comes down to your overarching objectives.

We could really talk about this topic for hours.

An interesting question, which we are getting asked often, is ‘whether I should invest in an apartment or a townhome?’

If you plan to invest in real estate, you won’t only need to choose the best investment loan available to you, but also the type of property to buy and this decision may be split between either a townhome or an apartment.

Apartments can be an affordable entry point into the market for any first-time investors, in areas that may otherwise be beyond ones budget, in comparison to a home or townhome. The more affordable price point, means more investment choices with the goal to purchase apartments to create a more diverse portfolio.

Townhomes are typically more expensive than apartments. A townhome can be a good alternative for investors who want to achieve a balance between rental yield and capital growth. Generally, with townhomes, you will still be bound by bylaws, however, these tend to be more relaxed and less expensive in comparison to apartments.

Ultimately, there is no ‘one size fits all’ answer to this question of ‘which property is the right one for me to buy?’, as it all depends on your overall investment objectives and strategy.