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C&G on the Beauty of the One Bedroom Apartment
Investing in a one bedroom apartment comes with many benefits. While one bedroom residences may be compact, they are neat real estate gems that are not to be underestimated by savvy purchasers. In our latest blog, C&G unpack the beauty of the one bedroom apartment, examining everything from affordability to maintenance.
Quality one bedroom apartments can be found across Melbourne’s premium inner-suburban pockets, and they represent the most affordable purchase option for those looking to enter the market or invest in a rental property. With the median Melbourne house price sitting at $809,000, many would-be buyers are looking to units or apartments as more affordable options – their median sales price is at a comparably accessible $466,000. When looking for a suitable investment option, keep in mind that acquiring the best property you can in the best location you can – even if it is smaller than you may ideally like - is often a pragmatic strategy.
Easy to lease and sell
The Australian Bureau of Statistics reports that the number of single person households is on the rise, with fluctuating economic circumstances and evolving societal norms driving some of the change. As the number of people living alone is predicted to increase to 1.7 million over the next 20 years, the demand for one-bedroom apartments is set to rise along with it, making it an intelligent investment with the potential of a good return.
One bedroom apartments are easy to maintain for a few key reasons. As they are usually occupied by only 1-2 people, the wear and tear on the property is likely to be minimal. There is also a reduction in the number of problems that can arise due to plumbing and wiring related issues, simply due to having less of both within the property. It’s certainly less maintenance work (and cost) than a Federation mansion!
Entry level investment
The relative affordability of a one bedroom apartment makes it a great option for singles or couples interested in an entry-level investment. A 20% deposit on a $300,000 property works out to be around $60,000. This is a substantial sum to save, but one that can be achieved with careful budgeting over a period of time.
The affordability and popularity of one-bed apartments make them an ideal entry-level investment option. As the demand for one-bedroom apartments is set to rise along with the number of single person households, they are likely to remain a popular investment that will remain easy to lease or sell.