Small not Big may be the new way of investor thinking
The most successful investors tend to be those who use all avenues of research to best position their properties where people most want to rent.
Locations handy to employment, education and transport hubs have always been popular but rental affordability has clearly had an impact on some of these spots.
The solution has been renting in a shared home or large apartment but it is now looking like the one-bedroom apartment is growing in appeal.
The Sydney Morning Herald’s Chris Tolhurst in the article ‘The power of one’ (21/04/12) suggests that seasoned investors are buying one-bedroom apartments, especially older-style one-bedders, and says the trend is an example of ‘well-informed investors thinking outside the square and buying specific types of property before others jump on the bandwagon. Any resistance Australians may have had to the idea of living in a one-bedroom unit will change as ‘inner-city property grows less affordable and one and two-person households become commonplace.’
This is definitely worthwhile food for thought for first time investors or those looking to increase their portfolio. The price of the one-bedder may be considerably more affordable than that of a two-bedroom property, though location and the property’s layout and features, including overall size, will remain important considerations.
The Australian Bureau of Statistics forecasts that couple’s with no children will overtake couples with children by 2014 and represent up to 60 per cent of couple relationships by 2031, while the number of one-person households will also increasing significantly to up to 3.6 million by 2031.
A percentage of these households will be renters, and meeting their needs may be a well-considered long term property investment strategy.