53 percent of buyers admit that finding the right property is the biggest obstacle in the real estate buying process.
These buyers fear spending a fortune on the wrong type of property. So, if you’re planning to buy an apartment, it’s rational to have this fear. With so many different types of apartments, it’s a headache deciding which one to buy.
So, how can you overcome this challenge and pick the ideal apartment?
Read on to learn about the different types of apartments that exist today.
Loft Apartments
Loft apartments are big, open spaces with minimal interior walls (if any). All the rooms you need (the bedroom, the kitchen and the living room) are combined into this single space. The open concept of a loft apartment creates plenty of flexibility to decorate.
So, you have the freedom to make the space whatever you desire it to be.
One of the biggest drawbacks of a loft apartment is the lack of traditional storage space. These apartments don’t have closets and kitchen cabinets. So, if you decide to rent a loft apartment, you’ll incur an additional cost to acquire a wardrobe/custom-built closet.
Lofts are modern and trendy, making them a perfect real estate investment. You’re sure to attract tenants to your loft apartment who are willing to pay a fair rental rate.
Studio Apartments
A studio apartment has a similar layout as a loft; it’s only smaller in size. So, it has one central area designated to serve different functions like the living area, kitchen area, and bedroom area. A studio apartment, in many instances, will have a separate bathroom space.
Studio apartments are cheap to rent/buy, making them perfect for first-time property buyers. Also, studio apartments are easy to clean, and their utility bills are relatively low. However, their small spaces might be unsuitable for people with many household items.
Also, as an investor, when you find foreclosed apartment buildings for sale, check whether they have studio apartments. You want to invest in a building with studio apartments to attract new tenants quickly. The idea is to take advantage of the high demand for studio apartments for rent.
Convertible Apartments
A convertible apartment is a studio apartment with an allocated bedroom space. So, it’s relatively larger than a typical studio. To enhance privacy, you can easily install wall dividers around the allocated bedroom space.
Also, separating the living and the bedroom space will increase your overall productivity. All you need is to move away from the bedroom space whenever you’re working. You want to make it easy for your brain to transition from sleeping to working.
Finally, a convertible apartment is relatively cheap and easy to own and rent. The small size of the convertible apartment plays a key role in reducing the utility bills. Also, it’s easy to keep your convertible apartment clean and clutter-free.
So, as a real estate investor searching for the best apartments, choose the ones with convertible apartments. These apartments have high demand, so renting them at a good rate is relatively easy.
Low-Rise Apartments
A low-rise apartment is a building that’s only a few stories tall. The low number of stories means this building has a low number of units. And that’s why many low-rise apartments have fewer residents.
As a real estate investor looking for properties that appreciate fast, consider low-rise apartments as they have better resale values. Also, these apartments are closer to the streets, so tenants prefer them due to their proximity to key amenities.
However, before you settle on investing in a low-rise apartment, learn the features of a profitable rental property. The goal is to know the key things to check before buying a rental property.
High-Rise Apartments
High-risk apartments are tall buildings with more than four stories. These apartments offer excellent views and allow for more natural light. People who love socializing prefer high-rise apartments as they usually have numerous units.
So, it’s easy for these individuals to meet new people in their apartment buildings and socialize. Also, the management organizes social activities to encourage interaction among the residents.
Unfortunately, as a new investor, raising enough capital to buy a high-rise apartment might be challenging. These apartments are significantly more costly to build than low-rise apartments. And that’s why corporations own most high-rise apartments.
Luxury Apartments
Luxury apartments are high-end apartments that provide amenities beyond standard ones. These apartments are significantly larger and more spacious than other types of apartments. Also, they have high-end appliances and housewares.
Here are some of the amazing amenities luxury apartments offer:
- On-site and valet parking
- High-end fitness centers
- Large swimming pools
- Modern spas
- On-site movie theaters
- High-speed Wi-Fi
- Sporting facilities
- Green spaces
- In-building retailers and services
- On-site restaurants
- Private meeting rooms
- Luxury bathrooms
- Spacious walk-in closets
These amenities provide the residents with everything they could ever need/want in an apartment. Also, luxury apartments strive to provide the residents with the city’s best views. Many people are willing to pay top dollar to live in a luxury apartment to enjoy all these perks.
So, as an investor looking for a real estate property offering a high return, consider buying luxury apartments. Look for resources that guide you in choosing the best apartment building. You want to own a luxury apartment in a prime location to maximize your returns.
Co-Op Apartments
As a single investor raising enough capital to buy or construct an apartment building might take forever. You can consider joining hands with other investors and forming a co-operative to overcome this financial challenge. The idea is to contribute funds towards this co-operative and raise enough money to acquire an apartment.
However, before investing in a Co-Op apartment, find out more about how they operate. Find out what are your rights and obligation as a shareholder. Also, learn who heads the co-operative and how to terminate your membership.
Your goal is to gather enough information to decide whether buying Co-Op apartments is ideal for you.
Co-Living Apartments
Co-living apartments are popular in densely populated cities as they offer a cheap housing option. Co-living apartments provide residents with their own private bedrooms while the rest of the apartment is shared. So, a co-living apartment might have three private bedrooms with a shared living room and kitchen.
So, if you’re planning to buy an apartment in a large city, consider a co-living apartment. The idea is to attract many different tenants to increase your revenues.
Walk-Up Apartments
A walk-up apartment is a tall apartment building without an elevator. The only way to access units on different floors in this building is by walking up multiple flights of stairs. The owners often charge low rental rates to attract tenants into these apartments.
Also, walk-up apartments are typically smaller than other types of apartments, such as high-rise apartments. The small size means a low number of units and tenants. However, the small size is not necessarily bad as fewer tenants enhance privacy.
So, some people might prefer walk-up apartments to enhance their privacy. Also, tenants in many walk-up apartments cherish the challenge of walking up the stairs. They say walking up and down the stairs burns down calories and improves their health.
So, if you acquire a walk-up apartment, you can leverage these things to attract and retain tenants.
Micro Apartments
Micro apartments are basically very small studio apartments. These apartments are popular in densely populated cities with expensive housing. These apartments offer comfortable yet affordable accommodation options to people in these cities.
Unfortunately, some might not have full kitchens due to micro-apartments limited spaces. Also, these apartments might not be ideal for couples.
As a real estate investor, weigh these pros and cons to decide whether to invest in micro-apartments. Also, consult other real estate experts on what to consider when buying an apartment. The goal is to learn the key things to guide you to know which type of apartment building to buy.
Compare Different Types of Apartments to Pick the Best One for You
Buying an apartment is a huge financial decision that you cannot afford to mess up. So, compare the above types of apartments to decide which one to buy. You want to find out the features of these apartments and what makes each of them stand out.
This information makes it easy to decide which type of apartment to buy depending on your needs.
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