High-rise residential property are seems to be the most famous option in property investment field. Many of the property investors like to choose high-rise property as investment purpose due to the purchase price is lower than landed property and this type of property is always an excellent way to kick start their first property investment journey.
While there is a multiple benefits that you can get from high-rise property investment, you should be extra careful of the pros and cons that come along with it;
High-rise residential properties are usually come with the facilities such as swimming pools, gyms room, lobby and many more. While there is no such facilities appear in landed property unless yourself make a space to create these or previous homeowner have done these earlier and its price are often nearly billions.
This is one of the good side to investing in high-rise residential property.
2. Capital Appreciation
The rate of capital appreciation of the property is plays a significant factor in property investment field. The capital appreciation for high-rise property are determined by its facilities, accessibility, vicinity, future development within the area of property and so on. You will have to do your homework which area of the high-rise property will bring you better appreciation as well as its demand is high.
For example, you may invest in the high-rise property that nearby universities or colleges as most of the students will look for the hostel to stay in for up to 3 or 4 years.
In this point, there are several factors that can determines whether a high-rise property is livable;
- Higher dense apartment or condominium
It can make people feel crowded in some situation such as waiting the lifts, small car parks, traffic congestion and etc
- Quality of environment
People are prefer higher property facing away from swimming pool and playground to avoid the noise. Besides, if there is quite often hear robbery cases, yourself will step away from this property for sure.
Before buying high-rise property to invest in, you should look around are your neighbors mostly student, families or expatriates? Bu doing this, you will get to know what type of tenant you should look for.
4. Utilities Bills and Fees
The utilities bills and other fees to be committed when live in a high rise unit may not be so obvious. Here are some fees that you should know when investing in high-rise property
- Parking Fee
In general, each unit comes with 1 or 2 carparks (maximum 2 carparks), and each of them have their own places which you can’t simply change it. Besides, if you have only 1 car and you own 2 carparks, you can rent the extra carpark to other residents.
- Maintenance Fee
For high-rise property such as apartment, condominiums and etc, every residents are need to pay for monthly maintenance and sinking fund fee for upgrades, repairs the facilities. Besides, if you’re rent out your property, you would still need to pay the maintenance fee as you are the one who own this property.
- Utilities Bills
For serviced apartment, its utilities bills are equates to commercial billing of electricity and water bills as its building is built on commercial land. Its utilities bills can add up to more than double of others residential property.
In conclusion, before buying high-rise property for either personal use or investment purpose, you should put all the above factors into your consideration. For property investor, although this is a good start to invest in high-rise property, but do make sure that you have investing in the right one which able to bring you the better profits from either rent or sell it out. For housebuyer, if you’re prefer to live in high-rise property, then you should look for the place that is suit to your living style and most importantly, you won’t regret after you bought.