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  1. #1

  2. #2

    Houses Vs Apartments

    Good question Mark! I have both, and I'm pretty agnostic on the matter. I always have a minor panic attack when my service charge bills come in, but after factoring in the lower maintenance they probably come out evens in reality.

    I'd love to hear other opinions...

  3. #3
    I feel a bit daft for being so close-minded now. I've never really given it much thought that apartments have lower maintenance costs but you're absolutely right.

    My historical aversion to flats has always been the double-whammy of both a lack of rent AND a service charge whenever there's a void period. Makes the voids feel twice as long!

    Also, there is more chance of neighbourly disputes which, as a managing agent, is a pain in the backside.

    My main fear of flats though is the block management companies. I am still yet to come across a company who is managing the building properly. I cannot stand the attitude of collecting service charges; taking out the management fee; and then telling property owners that there isn't enough money in the kitty to do repairs!

  4. #4
    I'm currently encountering no end of problems and expenses with the housing association related to my buy-to-let apartment, which are almost entirely out of my control.
    Add this to the on-going service charges, building fund contributions, etc etc, and it really cuts into the ROI for apartments.

    The only benefit I can see at the moment is potentially lower vacancy rates due to apartments generally being located in city centers where people tend to rent.

  5. #5
    I love apartments personally, better ROI and they have out performed houses in capital growth over the last 10 years.

    I have checks I make before I will look at apartments

    Lease 125 years or more
    Who is the management company, what's their track record?
    How big is the block? Smaller the better. This means I have better control on what happens

    All learnt through mistakes and successes but if you do that extra bit of due diligence the rewards are there to be had.

    That being said I think you should mix your portfolio with both.

 

 

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