By Hayley Pillar
With housing affordability dropping and our population tipped to grow to 37.6 million by 2050, experts forecast apartments may be the better investment choice to cater for the rising demand for inner-city living.
However, not all apartments will deliver the same returns. Our experience tells us newer apartments are not performing as well as older-style apartments from the 1920s to 1970s eras. This is because the latter have a significantly higher land value and will ultimately accelerate your capital growth. It’s also worth investing in a small boutique apartment block rather than a high-rise development. Again, this is because the land value of smaller blocks is higher.
If you’re on the hunt for a solid inner-city investment, prioritize older-style apartments in a small block and you’ll be on your way to reaching your property goals.
There are many benefits of purchasing an apartment as an investor, the key one being that apartments have a lower entry-level purchase price. You can find quality apartments for half the cost of a house – and a smaller deposit makes it more achievable to start or grow your portfolio sooner rather than later.