Should I purchase a one bedroom apartment?

Should I purchase a one bedroom apartment?

Category: Buy | Invest
one bedroom

The one bedroom apartment is becoming a growing part of the property market due to affordability factors and changing lifestyle preferences. They offer an entry point into the market and, more often than not, the convenience of being close to the city and public transport. But is a one bedroom apartment right for you?

As an investor

Based on data from the Australian Bureau of Statistics, demand for smaller dwellings is likely to grow based on an increase in single and two person households. The number of people living alone is projected to increase from 2.1 million in 2011 to between 3.3 and 3.4 million in 2036. The number of people living as a couple without children is projected to increase by a higher percentage, from 4.7 million to between 7.3 and 7.6 million.

Many people are out to rent for the lifestyle. They are prepared to make trade-offs (like size) to live in a premium location with the convenience of infrastructure (like public transport, shops and cafes) on their doorstep. A one bedroom apartment in a premium location thus has the potential to outperform a two bedroom apartment in a less desirable location.

Price and diversification are also factors an investor should consider. As a first time investor, a low entry point may be a more financial feasible option. As you build a portfolio, your preferred strategy may be four or five economical properties over one large property.

Related podcast: 2UE ‘My Property’ segment with CEO Ron Cross, July 15 

As a home owner

If you’re looking to break into the property market, a one bedroom apartment is usually more attainable in terms of price. This is particularly true if you desire an inner city location.

If you’re concerned about the lack of space then ask yourself, do I really need a second bedroom? If you’re single, or a couple without children, chances are one bedroom to sleep in at night is probably sufficient. People have a tendency to buy more than they need. This results in spending more money and having a higher mortgage debt. Is the extra room worth it?

Related article: Housing wants vs housing needs via CoreLogic

Factors to consider

Whether purchasing a one bedroom apartment as an investor or owner occupier, you should consider the following:

The ideal location is within 10 kilometres of a major CBD and within walking distance to local amenities such as shops, restaurants and public transport.

Look for practical, sought afters inclusions like an internal laundry that will improve the everyday quality of living.

Ensure there is ample storage space and look for something with a balcony or courtyard to increase the overall square footage.

Whilst not all views are made equal, avoid apartments that look into a wall or anything undesirable.

Ready to purchase a one bedroom apartment? Browse the options now

Copyright 2019 ParkTrent Properties Group Pty Ltd. All rights reserved

This website only contains general information. It does not contain financial advice, and does not take into account your objectives, circumstances, or needs. Members and representatives of the ParkTrent group are not licensed to give advice in relation to certain financial products, including Self-managed Superannuation Funds. You should obtain your own financial, taxation and legal advice before making any decision.

Terms, conditions, and fees may apply, along with credit assessment criteria for loan products.

Members and representatives of the ParkTrent group may receive commissions in relation to the services they provide to you, or on your behalf.

Park Trent Properties Group Pty Ltd ABN 89 101 491 507 | Site Supported by natiive