[jeffkrol]

It probably is the best investment most people make because they don't make other investments.

Property is an investment just like any other, and one could just as easily ask why someone puts money in the stock market while renting. Whether it makes sense to own investment property while renting the place you live depends upon many factors. How good is the investment? How is the rent? How old are you? Where is the investment property versus where one wants/needs to live? How long does the person expect to stay in the same home? How able and interested is one at home maintenance? And on and on. One size does not fit all.

There is a catch here.. IF you can afford to invest in property, investing in ones own is pretty much a priority.. to use some "common thinking" the wealthy never pay off their personal mortgage (at least that is the "recommendation") knowing they can (hopefully) invest it in a higher return market.... There are always exceptions i.e "cash deal you can't pass up" ect.

Of course renting offers more liquidity (not tied to market and area and it is easier, generally speaking, to relocate without the hassle of selling what you own)...

One of the advantages to having rental property is unused materials (which primarily have been written off on the rental investment) can be used to remodel/improve your primary residence, an option not available for a renter..

I can see a few advantages to renting.. more advantages to owning including your primary residence equity as a cash cow for investment..... even if you don't plan on spending time there.. Of course renting a dump at a low rate in comparison to what you would like to live in (and what it would cost you) is probably the best of both worlds..

[Reliant K1000]

Also, another thing to consider is the Strata that the apartment you are buying has, and the management firm who oversees it. Ask to see the minutes of the meetings...they should be able to produce them for you, and if they are reluctant, what are they trying to hide? Are they well funded if all of a sudden a council wants to have a levy put on to fund a new roof, for instance?

I've lived in the same Townhouse for 16 years and some councils (they are a group of representative owners voted in every year) have been awful, and some have done some really beneficial things.

We had a 2 year discussion on siding issues because it was so expensive, and a few months of debate ensued because of a faction who wanted wood-like siding, and another who wanted only real wood...then a whole meeting on the colour...and on it went. This was partially because there were 200 units with owners each with their opinion.

As for a good investment, a well trusted realtor once told me that on an apartment you can lose money, a townhouse you generally break even with, but a home you usually will see a profit, barring nothing unforeseen. That has generally held true around where I live.