Why I think (good) apartments are poised for enormous growth

Smart buy. Ignored the herd of "Brisbane isn't a unit market/don't buy units" Got a great entry price by ignoring popular sentiment.

Just need to be careful as OP said and buy premium location when buying them.

 

I'm about to put an offer on a 70s apartment, no frills 2 bedder, 1 bath and 1 car port near my home. I buy because I can. I am not buying another house because I can't. Pretty simple. Heck, I might move in there one day.

 

I can see no problem with owning an apartment, particularly having observed the inner west boom back in 2014-2016. I think there would be an increasing number of people who favours apartment living because (a) it’s arguably easier to maintain from an owner’s perspective; (b) young professionals who are priced out for large houses would prefer a convenient / better suburbs; (c) many immigrants are from countries where apartment living is the norm (ie. Japan, Singapore, London).

An old block is a safe bet - good luck!

 

I’ve lived in the inner west of Sydney all my life and am now investing here. Still value to be found and very easy to rent. I like older walk up buildings that are close to transport and features like the Callan Park or the Bay Run. There is a large segment of the renting market that wants be and two bedroom apartments, even during these times. My mantra is buy into solid buildings located close to transport and amenities.
Good luck to all.

 

There has been positive movement in the price of apartments in both Sydney and Brisbane. I agree with the sentiment that when houses becomes too unaffordable, people who wants to own a home will be looking into buying an apartment in an area that they want to live. I got a couple of apartments in my portfolio in well located areas of Sydney and Brisbane. If given the chance again to choose, sure I would get a house 100% given how much strata and maintenance fee that I have been paying, but apartment price does grow and will continue to grow as houses become increasingly impossible for the majority.

 

Quite the price for a 1 bedder with no parking...

"In the inner west, a one-bedroom unit sold for $925,000 after 18 registered bidders pushed the price $225,000 over the reserve.

Despite its 50-square-metre floor plan, the unit – at 1/14 Denning Road, Petersham – boasted a million-dollar location,"

And if you're wondering why it's a million dollar location, I'm not sure either, it's just a quiet street...

From domain

 

Also saw one in the north shore where a 3bedder apartment sold for over $250k above reserve (which reserve I would say is “market price”). Three bidders fighting for this apartment - two of whom are probably downsizers (judging by their age).

Investment in apartments is arguably harder to do well compared to houses; but with good due diligence (and luck, obviously) you could still make good profits out of it.

 

And that’s what will ultimately start forcing up apartment prices. Houses become unaffordable and gap between house and units grows to the extent that units start looking more attractive. In addition yield differential grows house price boom pushes up both land and construction costs, which feed into costs of new unit supply and ultimately prices.. At some point units will play catch-up a d be a good investment, just much more timing sensitive.

 

But house prices will just keep going up…. It’s the land…. Think about it, houses in HK are completely unaffordable. Units can be bought… ok, they aren’t cheap either, but houses are super expensive.

 

I don't think anyone disagrees with that. One of the points I was trying to make in my post was the attitude of some first home buyers of "well I have zero investments, and if my first purchase can't be a house, then stuff it, I'd rather have nothing".

Of course a house is the better choice 99.9% of the time, but sometimes you have to pick from the opportunities you have in front of you not the ones that don't exist. If it's a choice between a good apartment or nothing, my point is; take the damn apartment!

 

Not in Brisbane would be the first criteria for good location.

Brisbane has an oversupply of units, developers are building heaps, and the prices are enormous.

Some ppl distinguish between those with lifts (which are very bad) and those that you have to lug your shopping up flights of stairs in the heat of summer. I would prefer the lift but wouldn't pay for it. I would never buy second / third floor walk up, but wait, wouldn't buy ground level either.

Some ppl think a unit is a portion of a development site. What rubbish!!

If you can't afford a house, then marry someone richer than yourself so you can. Or if you really like units, maybe a house like one (whatever that means - its personal).

Also this thread has HUGE number of Sydney ppl pontificating about units in Brisbane. Pontificate away, this is the place to do it. Don't go spruiking units on the Brisbane thread.

Now i am going to fess up. I have townhouses. One in Brisbane. One in Gold Coast.

On Gold Coast townhouse living is very popular, especially near uni/hospitals etc. I researched very heavily units in Bris during the first lockdown but didn't buy one (bought house). There were HEAPS of bargains, sooo many it was scary.

 

I knew there was a reason I chose her for my holy matrimony

 

Live/rent in an apartment (run a business and its partially tax-deductable) complex with all the bells and whistles and buy shares/houses/commercial RE.