As Sydney property prices continue to rise and more and more people are priced out of the market, we believe that the demand for three bedroom apartments will create a new “hotspot” within a few years. We see the beginnings of a trend where families are reconsidering previously held assumptions about their needs in order to decide whether it is better to buy a house or apartment.
Housing affordability is the word on everybody’s lips and this will be the catalyst that will change the perception urban Aussies have of bringing up children in an apartment. It certainly will be a reinvention of the quarter acre block! There are cities throughout the world where it is the norm for families to live in apartments (think New York, Paris, Rome…). These families have made a lifestyle choice, which includes concepts such as “walkability”, short commute times, minimalism and community spaces. For them, deciding whether it is better to buy a house or apartment comes down to the value of space over convenience and connection.We believe that demand for 3 bedroom apartments will create new Sydney hotspot. #BuyersAgent #SydneyProperty Click To Tweet
We know that many people want to remain living within close proximity to the CBD once they have kids. But with Sydney property prices the way they are, this is not always possible. All options need to be tabled, including whether it is better to buy a house or apartment. For those who can’t afford the cost of buying a family house in the inner suburbs, there are four options:
- Stay put. This might be an option as long as they aren’t currently in a one bedroom apartment. Often, though, the tiny 2 bedroom cottage or unit that worked well as a first home isn’t quite large enough to cope with the arrival of a second child.
- Move to the ‘burbs. But many don’t want to relocate to a new area when they become parents. They want to retain their social & family connections.
- Rentvest. The trendy term for renting where you want to live and buying a smaller investment in the same area or an affordable property elsewhere.
- Buy a three bedroom apartment where they want to live.
For people who are hardwired to own their own home, option 4 is becoming increasingly attractive. It’s the best of both worlds – you just have to pare back your possessions and make sure you buy close to a park.If you can’t afford to buy a family home in Sydney’s inner suburbs, you have 4 options Click To Tweet
Traditionally buyers have accepted that houses make better investments because of the land content but this logic doesn’t apply in all areas. This begs the question: do apartments increase in value as much as houses? The answer is: yes they can. In fact, in many inner suburbs of Sydney a good apartment will out-perform houses in terms of capital growth. In urban areas where land supply is exhausted and with Sydney property prices sky-high, the demand for quality apartments is growing. We are even starting to see some developers incorporate more “family-friendly” features into their plans. Our hot tip is that three bedroom apartments will be the next boom market in Sydney.
Are you curious to know whether this is an option that could work for your family? Contact us now for a free 20 minute phone consultation.
Published: 16 October, 2017
DISCLAIMER: Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.