Sell with Confidence
Read More
News

Houses vs apartments as investment assets

By Paul Nees

With our ever-increasing population and the high concentration of new jobs in metro areas, people are tending to flock to the city, meaning the “great Australian dream” is shifting and no longer represented by the traditional house and backyard in the suburbs.

According to Domain, the number of people living in high-rise apartments (more than four storeys tall) has more than quadrupled and one in 10 Australians now lives in an apartment.

It’s no surprise that work-life balance leaves many of us seeking maximum convenience and living closer to key amenities such as shopping centres, schools and transport links means less time stuck in traffic and more leisure time instead.

While houses still tend to outperform units in terms of capital gains and remain one of the strongest investment opportunities, increasing prices have made the family dream home simply unattainable for the majority and the reality is that more of us are living in apartments, townhouses and duplexes.

For cashflow apartments generally trump houses, with yields averaging 3.9% currently compared to 3.3% for houses. Apartments also have lower maintenance costs.

2020 should be a good year to start or build your investment portfolio. Check out 22/480 King St, Newtown below as a solid investment; at around a 4.6% yield and record low interest rates it’s likely to outform cash in the bank for a long time time come.

Up to Date

Latest News

  • Lane Cove real estate weathering the storm

    Sydney has been the market most visibly impacted by the Covid-19 period. The number of suburbs showing growth has dropped sharply and danger markets have doubled.We’re starting to see the emergence of a two-speed market, with suburbs near CBD centres that have a higher proportion of owner occupied properties showing … Read more

    Read Full Post

  • Renewed global real estate activity

    Savills Research have recently completed a global survey on real estate market sentiment. This was a survey to agents across a range of markets. In a promising result for property markets globally, 78 per cent of respondents said that most or almost all of the buyers in the areas … Read more

    Read Full Post