In the 1950’s we were introduced to the ‘Great Australian Dream’. A big house on a big block of land. The Hills hoist featuring in the large back yard. Large enough for all the neighbourhood kids to gather for daily cricket matches through the long summer afternoons.
Baby boomers raised their families in these constructions of suburban nirvana in the 70’s and 80’s.
However, the tide is slowly turning, the younger generations are attracted by different lifestyles and different locations. Gen Y have created a surge in the popularity of vertical living.
Whereas once one bedroom apartments were a clever way for developers to cram more apartments into building and push up their profits, they are now becoming a sought after commodity for a growing demographic of smaller, high income professional households.
The Australian Bureau of Statistics predicts a 1.7 million in the number of single person households over the next 20 years, with further suggestions that childless couples could outnumber the traditional ‘nuclear family’ by 2031.
Gen Ys want to be where the action is. They like the humming inner city neighbourhoods that offer vibrant café’s, boutique shops and plenty of leisurely pursuits. These area are close to the CBD, close to transport and serviced by a plethora of modern amenities.
These areas, however, are notoriously expensive and buying into a 2 or 3–bed apartment, as a first home is becoming nigh on impossible. Not wanting to leave there cherished lifestyles, this is forcing a steady rise in the popularity (and price tags) of one-bedroom apartments.
So…. What does this mean for you as an Investor?
As an investor, it’s essential to understand how certain demographic trends impact your market. And this means both tenants and owner-occupiers – the former pay your mortgage, while the latter dictate long-term values.
Gen Ys are the new property players, so working out what they want from a home to rent means a much higher likelihood of identifying and securing an investment that will outperform over the next twenty years or so, at least (if the suburban McMansion trend of the 80’s and 90’s is anything to go by!).
The Bottom Line.
Given the changing preferences of lifestyles and the shrinking household size, the right type of one bedroom apartment could make a fantastic addition to your property portfolio, providing good yields and above-average long term gains.
At Calla Property we carry out an enormous amount of due diligence to research just the right apartment for you. The right city, the right suburb, the right location. The best developers, the best apartments and the best aspects. No stone is left unturned. To learn more about what constitutes the right kind of one bed apartment and find out just which apartments have passed out stringent tests contact us now.