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Do One Bedroom Apartments Make Good Investments?

The Australian housing market is gradually stepping away from housing, and into smaller units and apartments. Responsible for this is the fast expanding population, a continuing critical housing shortage particularly in Melbourne and Sydney, and affordability problems are all plaguing Australian real estate markets. There is no denying that people need more lodging and fast.

Not just any sort of lodging will do, however, with more young people choosing to reside in our inner cities and country authorities implementing urban development boundaries in a bid to curtail outside suburban sprawl, it appears that the answer is located in high-density lodging, namely one bedroom apartment style complexes.

You have a distinct advantage if you’re able to see where home trends are going to the future, especially given that land investment is a long-term endeavor. Deciding the upcoming large 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 sort of house you need to be considered for the portfolio. Before, Australians traditionally shied away from one bedroom flats in favor of large houses on large blocks of property.

Times are changing, as is evident from recent data published by the Australian Bureau of Statistics which forecasts increases in the number of single person households of 1.7 million within the next twenty years. Further research data also anticipates that couples without kids are put to outnumber the average “nuclear family” from 2031. This implies that not just will more home be required but smaller sized dwellings will be highly sought after as need develops.

This home revolution is exciting news to investors, especially given that even smaller, one bedroom flats are often more attainable concerning pricing . If you’re uncertain about how to go about how to invest in property, there are free resources available. Many investors that know that place is critical in regards to producing powerful, long-term capital gains have become concerned lately about having the ability to split into desired central town and bayside suburbs. Together with the value of homes rising significantly in those proven high growth regions within the last ten years, it is little wonder some believe they’ve missed the ship. To acquire an estimate, you can use an investment property calculator to estimate returns.

As usual however, this information includes a disclaimer. You cannot just buy any one bedroom flat within an inner city location and expect it to outperform the averages. There are still rules to observe if picking out the best possible flat. What exactly makes a fantastic apartment investment?


We know that inner city regions are in developing requirement from Gen Y and that a lot of the very proven investment places lie within a 10 kilometre radius of the major central business districts.

But it is not just about the postcode; Your flat needs to be within walking distance of the comforts young men and women wish to reside near such as stores, restaurants and restaurants and public transportation. In addition, you need to find the best road in the area; rather one that is quiet and tree lined, and continuously avoid purchasing on high traffic roads.

If your apartment is located in an outer region, you can market it towards different niches, such as being near a winery or a luxury day spa retreat.


In the conclusion of last decade and the start of that the “noughties”, many elements of both Melbourne and Sydney were over-developed using generic, higher rise style flat complexes. These mega-towers started to dominate the town skylines and produced a concrete jungle in their aftermath.

A good deal of investors were 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 always maintain strong need. Generic flats do not have scarcity as there is a surplus.

The seventies and eighties inventory is usually a great choice, as they’ll frequently be in original condition and in need of an upgrade to bring them into the 21st century. Buying something that needs a little of a facelift gives a chance to add value and boost your rental yield instantly.


While some characteristics of a flat are considered an optional bonus by renters, like your own laundry centers or backyard or balcony, others are a must have. It is important to provide a car space to your renter, though they may be public transportation users.

The fact is, even if they don’t want a vehicle distance, potential customers may and it is buyers that determine real estate values.


Understandably, a flat with a lovely view is obviously likely to show more popular than one with a window which looks out on the neighbors location or even a brick wall.

You should also find an apartment that is bright and light. Ensure you consult the local council to see whether any development is intended next door later on and if so, which kind. Bay views are excellent, but not when they are likely to be jaded by a monolithic tower block later on. It can be difficult finding a long term tenant when you rent out an apartment or flat, as they are often not raising a family. Tenant advocacy is a great medium to alleviate this stress.


A lot of people believe that a one bed flat will probably be boxy and uninviting. However when the design is right they could consume as much, or even more allure than something big and imposing.


Together with our changing lifestyles and contemplating that over half the families in Australia are two and one individual families, nicely situated spacious one bedroom flats make great investments and will provide powerful capital and rental growth in the long run. Make sure the property is valuated by a professional to make sure you are not overpaying for the location. If you’re truly unsure if even then, there will definitely be a selection of luxury accommodations to stay in and gauge the location.