The general comment I usually hear is that it is easier to rent out an apartment than it is a house. On the flip side of the coin, a house usually appreciates in value over time whereas an apartment doesn’t. I don’t know if these are gross statements, but if one assumes this to be true, then I would most likely be an investor of apartments.

Why? I guess it goes back to the lesson on cashflow versus capital gains. Rather than hope that a piece of property that I’ve bought is going to appreciate in value so I can make some money out of it five or ten years down the track, I’d like to see some money coming in right from the start. If it really is easier renting out apartments, then it seems to make more sense to get an apartment.

Speaking of apartments, there’s one in the heart of Melbourne’s CBD which is about the price range of the Northbank apartment block the hubby and I went to take a look at a few weeks back. I’m assuming from the fact that they didn’t take any pictures of the interior that its probably an old apartment with not much to shout about. This is the external view of the building:

806/39 LONSDALE STREET MELBOURNE
Price: $230,000

Features: A/C, Built-In Wardrobes, Close to Shops, Close to Transport

This fully furnished 2 bedroom apartment at the top end of town has leafy views over Punch Lane and the city skyline. Currently leased at $316 per week, the property provides a return of over 6%. In addition to all furniture and appliances the apartment has heating/cooling and this secure complex offers great communal facilities including laundry, games room, supermarket, 24 hour security and on-site management.

Location wise, I guess it really doesn’t get any better than this. Close to offices and walking distance to the University of Melbourne and RMIT, I reckon it wouldn’t be too difficult to get tennants for this place. As for the over 6% return – honestly, I’m not sure how they calculated this but it doesn’t seem to fit in with my figures. Perhaps I need to do a little more research on my own numbers?