All Topics / General Property / High rise appartments, not good for buy and hold?

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  • Profile photo of SplintSplint
    Join Date: 2008
    Post Count: 1

    Hi everyone,

    newby question here. I realise there is an oversupply of high rise appartments in the Docklands area but I'm curious to know if high rise appartments are regarded as a poor (or inferior to other types of residential proprty) investment for buy and hold investors since the land value compared to the appartment value is unproporionately low. I do recall reading somewhere that the land value of a real estate purchase should account for a minimum of 30% of the price.


    Profile photo of Tysonboss1Tysonboss1
    Join Date: 2007
    Post Count: 306

    It really depends on your investment stratergy,

    It's true you can't expect a high rise apartment to increase in value as fast as a house and land close to a growing area, However.

    The way I look at investing in property is that a property is a inflation hedged income stream, Meaning that even though your high rise apartment won't increase as fast as a house, it will provide you with an income stream of about 5% that grows with inflation mean while your capital ( the value of the property ) should also increase over the years by atleast inflation.

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