As household sizes continue to diminish and a rapidly growing population, this results in a critical housing shortage and housing unaffordability seeping into the real estate market. This makes apartments and flats a great investment property option as demand is constantly increasing.
With more young people preferring to reside within our cities and state authorities implementing urban growth boundaries in a bid to curtail outside suburban sprawl, it appears the answer lies at greater density housing, namely single bedroom apartment style complexes. As an investor, you have a distinct advantage if it is possible to observe where home trends are heading to the future, especially given that land investment is a long-term endeavour. Selecting the upcoming huge suburb can be hard and fraught with risk, but monitoring lifestyle and household trends is a lot simpler and can offer some fantastic insights to the kind of house you need to be considered for the portfolio. Before, Australians traditionally shied away from 1 bedroom flats in favour of large houses on large blocks of property. Times are changing, however, as is evident from recent statistics published by the Australian Bureau of Statistics which forecasts an increase in the number of single person households. It follows that not only will more home be demanded, but smaller sized dwellings will be highly sought after as need develops.
As an investor looking at property for sale this home revolution generates some exciting changes, especially given that smaller, 1 bedroom flats are often more viable concerning pricing. Many investors that understand that place is crucial in regards to producing powerful, long-term capital gains have become concerned lately about having the ability to split into the desired inner city and bayside suburbs. Together with the value of home rising significantly in those proven high growth regions within the last ten years, it is little wonder some believe they’ve missed the ship. There are still rules to see when choosing the best possible flat. What exactly makes a fantastic apartment investment?
Location: We are aware that inner city regions are in increasing demand from younger generations and that a lot of the very proven investment places lie within a 10-kilometre radius of our major CBD’s. But it is not only about the postcode; your flat needs to be within walking distance of the comforts, like stores, restaurants, and public transportation. In addition, you will need to find the very best road in the area; rather one that is quiet and tree lined, and constantly avoid purchasing on active roads. Many exclusive apartments are sold through private real estate listings so do your research and find a winner.
Architectural Style: In the conclusion of the past decade many elements of both Melbourne and Sydney were over-developed using generic, higher rise style flat complexes. These mega-towers started to dominate the city skylines and produced a concrete jungle in their aftermath. A good deal of investors had been stung by off the strategy prices rather than gained a return in their purchase because they forgot the golden rule, you must always get a property which has scarcity value (a point of difference) and will maintain always strong need. And generic flats surely do not fit the bill there are simply too many of the same thing. Instead, you have to go for something in an old, smaller complex of ten to twenty flats. Obviously buying something which needs a small face-lift gives a chance to add value and boost your rental yield instantly. Luxury inner city apartments designed celebrity style obviously have the most value but you can always employ some stylish decor to give that vibe. Couples are looking for contemporary and practical apartment living not a dull space that looks just the same as the next block.
Amenities: When some characteristics of an apartment have been regarded as an optional bonus by renters, like your own laundry centres or backyard or balcony, others are a must have. It is important to supply a car space to the renter, despite the fact that they may be public transportation users. The fact is, even if they don’t require a car, potential customers may and it is buyers that determine real estate values.
Views: A flat with a nice view is obviously likely to show more popular than one with a window which overlooks the neighbours area or a brick wall. It’s also wise to seek an apartment that is bright and light. Ensure that you consult the local council to find out whether any development is intended next door later on and if so, which kind.
Layout: A lot of men and women believe a 1-bed apartment will probably be uninviting, however when the design is right they could consume as much, or even more allure than something big and imposing. Ensure there is plenty of storage and a decent kitchen.
In Summary: Together with our changing lifestyles and considering over half of the families in Australia are one and two person families, nicely situated spacious one bedroom flats make excellent investments and will provide powerful capital and rental growth in the long run.