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Villa (Single Family House)
Villas usually have attached yards and gardens, parking garages, and supporting facilities such as swimming pools. Houses are commonly referred to as Single Family Houses in the United States.
1. Advantages of villas.
Villas have obvious advantages, and they have permanent ownership of the property and the land on which they are located. In general, the supply of single-family villas is relatively small, but they are the housing type that foreigners give priority to when they have sufficient funds. First of all, single-family villas have the best living environment, with their own independent gardens and parking garages, and no property fees. All matters related to the appearance of the house, courtyard improvements, and facility construction are decided by the homeowner. Land is a scarce resource, and single-family villas have exclusive land ownership, so there is naturally a lot of room for appreciation.
2. Disadvantages of villas.
The price of a single-family villa is high, and the threshold for buyers is high. If you don't live in it, it is not easy to rent out the villa, and it is often in a "vacant" state, so the single-family villa has a negative cash flow. In addition, due to the garden, garage, swimming pool, basement, large house area, etc., the maintenance cost of the villa is high.
Therefore, villas are more suitable for self-occupation and are the first choice for buyers with strong financial strength. It is difficult for villas to cover monthly loans with rent. Villas are also suitable for buyers who focus on asset appreciation potential. Although they have negative cash flow in the short and medium term, in the long run, villas have the highest appreciation potential among all house types.
2. Apartment/Condo
The concept of apartments abroad is more similar to ordinary residential commercial housing in China (70-year usage rights), which is a unit inhabited by one household (one or more people).
1. Main categories of apartments.
In foreign countries, apartments are usually units with multiple residents in a building. Each unit has one or more bedrooms, a kitchen, and a bathroom, but generally does not have its own garden. There are only public gardens and green spaces, which are owned by the homeowner.
Apartments include a Condo and an Apartment. A condo is often translated as a property-sale apartment or private apartment, where each household has independent property rights, which is very common in Canada and the United States. An apartment is usually translated as a rental apartment, which is used for rental rather than sale in most cases.
2. The difference between a condo and an apartment.
Rental apartments and condominiums are similar in appearance, with multiple residents living in one building.
The difference between a private apartment (Condo) and a rental apartment (Apartment) lies mainly in the difference in property rights, not in appearance or shape. For example, in a condo, each household has its own property rights, and each apartment has a different owner, while the entire apartment building is generally owned by one owner, who can belong to a company or individual. Generally, the landlord rents it out and cannot sell individual units, but only the entire building.
3. Advantages of apartments.
First of all, the price is much cheaper than villas, which is suitable for middle-class families to invest. Then, the main rental demand is met by apartments, so it is easier to find tenants for apartments, and you can "rent to support the loan", that is, use the rent to pay off the mortgage every month. This also makes the rental return rate of apartments worth looking forward to. In foreign countries, it can usually reach an annual rental return rate of more than 5%, which is a positive cash flow investment method. In addition, apartments are mostly located in urban areas or near schools, which is more convenient than suburban villas.
4. Disadvantages of the apartment.
However, the appreciation potential of apartments is smaller than that of single-family houses with land, and the appreciation rate is slower. Secondly, you need to pay property fees every year, and you do not have complete land ownership, only your portion. In addition, apartments in urban areas are also prone to insufficient parking spaces.
