There are lots of reasons it is well worth contemplating purchasing a Melbourne apartment. Amid talk of an apartment oversupply in Melbourne’s inner world, you might wonder if buying into the industry is crazy. However, what you might not know is that a lot of what you have heard concentrates solely on the short-term as opposed to the long-run. As we look into the future, quite a few variables are telling us that buying a Melbourne apartment is an alternative worth considering.
Factor #1: Population expansion
The first thing to check at when assessing the property marketplace is population growth. Victoria is the fastest growing state in the country concerning people, and following the State Government’s latest forecasts, the population boom is only just getting started. Victoria’s population is expected to nearly double between now and 2051, together with Melbourne’s inner and middle suburbs anticipated to rise by almost one million at that moment. To put those figures into context, that means Melbourne will experience roughly the same quantity of expansion that happened over the past 85 decades, in the next 35. Immigration will be a huge contributor to our increasing population, and will encourage urban sprawl. Over the next few decades we’ve got an expanding population to adapt to, and that is where Melbourne’s flat and apartment market will come to fruition.
Factor #2: Housing affordability
From an affordability perspective, apartments will always be the immediate option to consider. The truth is that fewer Victorians can afford to purchase a house and we must give them other choices. Melbourne requires a wide selection of property for young people, low to middle-income earners, pensioners and everybody in between – meaning there is an opportunity for everyone. Since the cost of homes has been skyrocketing, modern apartments will turn into the new norm of housing for a broadening array of individuals, particularly for people who wish to reside closer to the city, instead of being pushed 20km from the CBD. Apartments in the Melbourne CBD are price pointed very high, so it is expected that you either need a high-income job or have saved plenty of money. You can see a property manager to assess what is available on the market, and see if it is within your budget.
Factor #3: Weakening provide
Melbourne saw comparatively high amounts of apartment distribution in 2015 and 2016, and that’s exactly what fueled the oversupply. However, we are now seeing a considerable decrease in the number of flats coming to market, which challenges the awareness of an oversupply. In reality, if we look at public projections and the pace at which new apartments are coming into the market at this time, it is likely Melbourne will encounter an undersupply of apartments in the long-term. All variables considered, purchasing an apartment in the inner-city of Melbourne isn’t a crazy thought. They key is to consider this as a long-term investment as opposed to a means to create a fast profit. Off-shore investors can purchase no more than 50 percent of the commercial apartment complex, so you often should be quick with your purchasing decisions.
Are there locations beyond the CBD that make more sense to purchase an apartment?
Property investors often recommend doing purchasing an apartment in a block with no more than twelve apartments. This gives you more power and control over the maintenance and facilities of the property. If you are one of 100 units, it can be challenging to have action done when you are one of many. If the decision is huge, it would be tremendous work to gain the favor of the majority. There are always services that offer property valuation that help you accurately assess the value. Provided the location is forecasted to grow in demand and increase in capital value, then it could be an excellent investment. Speak to an investment property advisor today to see what property is the best match for you.
There are guidelines that you should abide by when buying an apartment. You should also consider what attributes would lure a tenant to purchase from you. Do they require one or two bedrooms? Would an onsite pool be persuasive in their decision? As a general rule, a one bedroom apartment should at least be 50 square meters. Other traits should include the environment. People gravitate towards the character of a property, and that applies to almost anything – music, fashion, and furniture, etc. Outside you may have a magnificent maple tree that gives it that characteristic edge. Natural characteristics however, can be seasonal. Apartments in the city usually look much nicer in spring when the trees are in bloom.
The external facilities and services are crucial when buying an apartment, or any kind of property for that matter. Is the location close to essential services such as a supermarket, train station or bus stop, or a post office? These are all driving factors, as it improves the quality of life for the tenant and saves them time if its nearby. Seek property investment advice today and secure an apartment today.