Note: The following article is for general guidance only. For binding advice, we strongly recommend that you consult an expert. We will be happy to put you in touch with the right experts in our region.
Condominiums, apartment blocks or commercial property: which investment is right for me?
Choosing the right type of property as an investment is one of the most important decisions that investors have to make. Each type of investment has its own advantages and disadvantages and is suitable for different investment strategies, budgets and risk profiles. To make your decision easier, we have summarised the most important features, advantages and disadvantages in the following table:
| Property type | Advantages | Disadvantages | Suitable for |
|---|---|---|---|
| Condominiums | Lower purchase prices, High demand, Easy to let, Low risk | Dependence on property management, higher ancillary costs | Beginners, investors with limited equity Individuals who want to invest in urban locations |
| Apartment blocks | Stable income from multiple tenants, higher potential returns, room for manoeuvre | High entry costs, Higher administrative expenses, Greater risk of regional price fluctuations | Experienced investors, investors with sufficient equity, people looking for a diversified income |
| Commercial property | Higher returns, Long-term rental agreements, Less administration (net rental models) | Market volatility, higher risk with vacancies, high entry barriers | Experienced investors, people with a high risk profile, investors aiming for high returns |
How to find the right investment
Choosing the right type of property for your investment is a process that depends on various factors. There is no one-size-fits-all solution, as each property has individual advantages and disadvantages. Below you will find a detailed guide with relevant links to further articles.
1. analyse your financial possibilities
Your available equity is one of the most decisive factors when choosing the right capital investment. While condominiums often have lower capital requirements, apartment blocks or commercial properties usually require a significantly higher budget. Use tools such as our Rental yield calculation for orientation and planning.
2. define your risk profile
Property investments vary greatly in their degree of risk. Condominiums in sought-after locations, for example, are a low-risk option, whereas commercial property often offers higher returns with greater risk. Read our article Condominiums as a secure capital investment for detailed insights.
3. consider your time commitment
Not every investment is equally low-maintenance. Condominiums usually require less management, especially with a property management company, while apartment blocks or commercial properties require more active management.
4. set clear investment goals
Do you want to build up long-term wealth or achieve high short-term returns? Condominiums and apartment buildings are ideal for long-term wealth accumulation, while commercial property is often favoured by investors looking for short-term gains. You can find more tips in the section on Investment strategies.
