Houses vs Flats – Property Investing UK

In this Property Education video, Simon Zutshi, author of Property Magic, founder of property investors network (pin), and successful property investor since 1995 joins the debate of House vs Flat? Which Should You Invest In.

Flats vs House for Investment? Simon begins by highlighting how there are definitely Pros and Cons associated with both, however knowing what he knows after so many years of Property Investing in the UK, he does have a favourite.

When it comes to a House vs Apartment, many investors idealise buying a new apartment due to the property generally requiring a lower investment than a house, generally er maintenance, and favourable to many tenants.

Simon addresses this aspect of the Flat Versus House debate by stating how the Cost per Square Foot of a flat might be higher than a house. Whilst there might be less maintenance in an apartment, a lot more can go wrong in the apartment building. When Choosing Between a House or Flat, if you have a lot of flats available to rent, it can be difficult to achieve the desired rent.

Flat vs Houses: Which is Better? Simon underlines that he generally prefers houses, especially due to them having much better Capital Appreciation. Another major factor is the difference between Freehold vs Leasehold Properties, and a Freehold Property Meaning you can own a whole building instead of Leaseholders owning individual units.

The Truth About Leasehold Property is that you are covering both Service Charge and Ground Rent. Leasehold Properties can also be harder to rent out if the Freeholders haven’t looked after it.

In summary, with regard to a Flat vs House in the UK, whilst a house can cost more, they can be utilised in conjunction with high cash flow Property Strategies such as HMO Property Investing. In the current UK Housing Market, a 1 or 2 bedroom apartment will not generate as much profit as a house turned into a House of Multiple Occupancy.