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.