This is a question I get asked on a regular basis and unfortunately there is no right answer. It is down to personal preference and what you are wanting to achieve from your investment.
Despite the stigma, apartments do make fabulous buy to lets for a number of reasons:
- They are generally cheaper to buy than houses and some can offer very similar rental prices
- They are lower maintenance as there will be a management company to look after the building and the communal area – no sudden need for a new roof!
- Apartments are popular with young professional tenants who will pay a premium for low maintenance accommodation, close to train/tram/motorway network
However you need to be aware that most/all apartments come with a monthly service charge and an annual ground rent which can eat into your profits. These are not items which can be charged to the tenants or added to the rent so you must take these into account.
Houses are always popular with families with children who are looking to settle in a home in the catchment area for their desired school. The addition of a garden also really helps.
With this in mind, tenants renting houses will generally stay in the property for longer, instead of moving each 6/12 months meaning less costly void periods.
You will also generally find that houses will increase in value quicker, and more dramatically than apartments and its larger plot also gives you the opportunity to extend/renovate.
The most important things to look for in a buy to let aren’t whether it is an apartment or house, it is its location, type of tenant likely to be attracted and yield. If all of these seem positive, the style of property doesn’t really matter.
If you would like any advice on your hunt for a buy to let, or have a questions for Octobers ‘Ask Anna’ then please feel free to get in touch either by phone 0161 442 1118, email firstname.lastname@example.org or by visiting me at the office on Moorside Road.