Director of Metropole Sydney, George Raptis, argues that units have recently outperformed houses as far as growth is concerned.
Whilst this is not traditionally the norm – apartments are reported to continue to make good investments, because it all comes back to supply and demand.
“Obviously, units are more affordable, and rising property prices mean that more people are looking for units as opposed to houses,” said Raptis.
The Australian Bureau of Statistics (ABS) projects that the number of lone-person households will swell significantly in the next decade or two, up from 1.8m in 2001, to between 2.8m and 3.7m by 2026.
“The way that we live is becoming more cosmopolitan, with beaches, cafes, and restaurants creeping higher on the priority list,” said Raptis.
There are more single and two-person households today than there’s even been, and people don’t want to live in a five bedroom household out in the suburbs. Instead, buyers are looking at location, and want to be close to work and entertainment.
“There’s a whole new generation of people leaving home looking at apartment living, and basically, it’s not necessary for these types of people to own a house with land,” said Raptis.
Here are some top tips when considering buying an apartment:
1. Bedrooms and floor space
The more bedrooms and the larger the floor space, the better. Ths means that as an investor you can charge more rent.
The position of the unit needs to be considered. You want something to be easily accessible but safe.
Renting families are likely to expect that the apartment has its own garage or allocated parking spot. They may also pay more for a home with a good view of the city, water or surrounding suburbs.
Peter Koulizos, author of Top Australian Suburbs believes that no matter who your market is, the ground floor of a unit complex is by far the best decision for an investor.
“Some people would argue with me but I would say ground floor is best from a landlord’s perspective because you don’t eliminate any of your market. If you go above ground floor you eliminate the older generation who don’t want to go up the stairs or people with young kids,” said Koulizos
Property experts agree that an apartment facing towards the north and away from the road, would make a highly desirable unit in the right area. This type of unit would receive good air flow and minimal noise from the traffic. Plenty of natural light is a selling point – as it’s good for entertainment.
Look out for high ceilings, feature walls. These details will return higher capital growth due to their authentic designs.