Disadvantages
.: More land and larger size building to maintain
.: Often more than 12km from the CBD, reducing opportunity for significant capital growth
.: Low rental yield compared with purchase price because you are purchasing land as well.
.: Higher rates compared with flats/apartments/units.

Flat / Apartment
Advantages
.: Initial purchase price is usually lower than home and land
.: Less maintenance
.: Share cost of maintenance, land tax with other owners
.: Purchase price and rental income offer higher yield
.: Can buy within 2 to 12km to the CBD, thereby increasing opportunity of strong capital growth

Disadvantages
.: Body corporate fees
.: Limited control of what others in the block are doing
.: Lack of personal outdoor space

There are many other property types for investors. These include:

Tourism Property
To qualify as tourism investment, a property will usually offer short term stays, has single key access and offers access to restaurant type facilities. Income is often pooled and then distributed to all apartment owners depending on a predetermined formula usually based on your purchase price.

Retirement Villages
There has been large growth in the development of retirement villages in recent years. Many of these are owned by investors who cater for the rental demand of the over 55’s. With most retirees preferring to stay in the one spot, long term tenancies are the norm in a retirement home.

There is no doubt that the retirement home market is growing, and an area that property investors should consider as a part of their investment portfolio.

Student Accommodation
Over the past 5 years there have been many new student accommodation properties built. Student accommodation is an extremely viable option to include in your property portfolio however it often comes with the warning tag ‘Let the buyer beware’. More research is required if you are considering purchasing this type of property, particularly on the drawbacks like the reliance on international students, the age of the tenants and the style of the property often makes it difficult to lease to the standard market.

There is no real model for specifically built student accommodation with opportunities varying from dormitory style to townhouses with common living areas.

So, which one do I choose?
If you consider only one type of property for your portfolio, you are limiting your opportunities. Diversification in property can assist you, so that you do not put all your eggs in the one basket. Some types of properties will perform better than others in different areas and market situations.

Disclaimer: This information is of the nature of general comment only, and does not constitute professional advice. Readers of this website should obtain professional advice with due regard to their own circumstances before acting.