WHY PROPERTY INVESTORS CHOOSE LANDED TERRACE

Most people encounter this problem when they want to do property investment. And that is the dilemma of whether to invest in a landed terrace or invest in a condo. Let us first analyse what are the key contributors to this decision, and thereafter delve into the details of pros and cons of investing in landed terrace.

1. Affordability
The type of property to buy might be impacted by the value of the property the person is able to buy. Usually landed terrace are much more expensive than condo. Therefore, only consider landed terrace if you can afford the property.

2. Purpose
Secondly, it might be influenced by the purpose of the property investment. If you are looking for higher capital gain, it is advisable to opt for landed terrace. For condo, it tends to bring more consistent annual return of rental income.

3. Yield and depreciation
Landed property might cost you more and it doesn’t guarantee to yield you with higher earnings. Price will be more resilient to depreciation for landed property because of the land that attached to your property. In terms of maintenance however, it falls under the responsibility of the investor to keep it in good condition overtime.

4. Holding power
You need holding power to realize the maximum potential return of investment in landed. The holding period might be a few years, and even if you rented it out, the rental may not cover the installment amount.

Since it is an investment, risk and advantages always accompanied you even if it is a landed property investment. Here are the pros of cons when you decide to invest in a landed property that you should take full consideration before doing so:

Pros of Investing in Landed Terrace

1. Bigger – landed property is normally bigger in size and you can benefits from the large spaces available in the property. Since many condos unit is considerably small compare to your typical terrace house.
2. Larger space – this might give you more land space in the end which can be used for many other intentions that can benefits the owner of the house. Having a larger space also enable your customers to use it as part of their hobbies.
3. Stands on actual land – if you own a landed property you are actually standing on your own land. Some people prefer to stand on their own piece of land rather than another one’s rooftop or parking space.
4. Pay for what you want – you will only pay for what you want or for what that you may find useful. So you don’t need to pay the additional things that you don’t really require or use much during your stay.

Cons of Investing in Landed Terrace

1. Land maintenance – since you have a big yard then you might find it is quite a hassle to maintain it because maintaining a yard is not for everyone. If you don’t do anything it will look too empty from the outside.
2. Secluded – maybe you will find such properties at a very secluded area which might be far away from the cities then you will find it inconvenient to travel far to the cities and feel isolated from the citizens around you.
3. Uninvited guests – you might come across the sighting of the unwanted guests in your household such as lizards and insects as yards might attract the attention of these creatures who will wander of your garden while hunting for food.

Conclusion

In the end, it is usually dependent to the individual preference when it comes to choosing either to invest on landed property or high rise property such as condos. Some might prefer landed terrace due to the reasons stated above whilst others may prefer condo property. It still falls back to individual investor’s preference and cash flow management of their property investments and the profitability that they seek.