What type of property are you interested in buying as an investment? Are you more interested in the type of property or the location? Are you looking for a short-term return or a long-term nest egg?
When it comes to expanding your property portfolio, there are many questions and circumstances to factor into your next purchase. Importantly, what is it you are trying to achieve through your next purchase?
It’s vital that your investments are working for you, especially in the current economic climate. In some cases that might mean letting go of what you think is the perfect investment and, instead, understand how to make sure your next purchase is working for you.
While units make up one quarter (25.9 per cent) of Australia’s national housing stock, CoreLogic recently flagged that unit affordability is some 30 per cent lower than house median values.
In higher density locations where single dwelling properties (i.e. houses) may be in short supply, the option for an affordable buy-in appears to couple with projected demand. With signs pointing toward demand for unit rentals, property investors may look to units as an option to add to their portfolio.
Not only are units less expensive that single dwelling counterparts, they generally involve less ongoing maintenance. Take away yard and driveway upkeep, as well as management of pools and communal areas likely covered by body corporate, it is one less thing for landlords to worry about.
While the ability to own/live in your own home with a backyard has been widely considered the Australian dream (for the majority of us, apparently!), the appeal of apartment-style living is ever increasing.
From a prospective tenant’s perspective, often convenience of location (unit blocks are often located close to public transport and public amenities), less property maintenance (no yard) and often more affordable rent, mean the benefits of unit living outweigh that of a single dwelling property.
Recent data also shows net overseas migration is likely to remain high moving into 2024, which will furthermore increase demand on all types of property.