Can Guess what the fastest growing demographic in Australia is? Well it isn’t families with small children.
It’s households with a single person who is looking for a fabulous apartment instead of a single family home.
A few years ago, many of the growing demographic was families looking for detached homes with a yard for kids and pets.
Today, there are more single people searching for an apartment, and one in every two properties built is an apartment building.
The Rise of House Prices
Cities like Sydney and Melbourne are seeing a rise house prices so buying an apartment is an easier way for potential property owners to have a foothold on a piece of property.
With many people struggling to buy a new home, they are left renting apartments for a longer time than they originally expected.
Apartments allow city dwellers an option for owning property in an area that is thriving and exciting.
Big cities have to expand upwards if they are to bring in more living space for residents.
Investments and Renters
Those who can’t afford to buy in the inner city might buy a piece of property in an outlying area and rent that out to fund their living arrangements in the city. This kind of creative investing gives them the opportunity to live in a bustling city they love.
It’s become extremely popular lately to fund inner-city living in this manner. These renters can become property owners and investors while living in an area that fits in with their lifestyle.
What about Baby Boomers?
An apartment might be a step up on the way to land and property ownership for some but many Baby boomers are often looking to downsize after their children leave the nest.
Large garden maintenance also gets to be a burden and with increasing age (and increasing holidays) they may not be able to care for a property like they once did.
A nice apartment in the city lets this demographic have easy access to local restaurants, cafes and local shops as well as transportation literally outside their front door. They’re easily able to visit friends and family who are also living in the city or surrounds.
Are All These Apartment Buildings Going Up Empty?
Old buildings converted into lofts and apartments were being built at an increased rate over the past few years. There’s concern that the market might be over-saturated with apartments.
December 2015 saw approval rates for new apartments falling by 8.3 percent. Prosper Australia released a study that showed 4.8 percent of Melbourne’s apartments are empty.
While some people do love living in the city, some don’t recommend owning an apartment as an investment opportunity.
Home buying and investing are considered two different things. It can be a great choice depending on your lifestyle but it might not be the way to invest for the future based on fattening a portfolio.
Apartment living can be a terrific choice for those who can’t afford to buy a home or those who love living in the city. It’s a great step for up-and-coming home buyers who might need a few years to save for a home.
Those who are downsizing can easily purchase or rent an apartment in the city too. A growing segment of the population is renting or buying apartments.