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There’s been a recent boost of interest in apartments, especially among first-time buyers and investors. This is likely due to several factors such as the current market conditions and overall affordability. Investors are also taking note of this trend, with many now considering apartments as an investment opportunity. So what does this mean for those looking to buy or invest in an apartment? With property prices soaring early in the year and now the continuous interest rate hikes it’s no surprise that more and more people are turning to apartment living as a more financially viable solution. Read on to understand how this shift has occurred and the benefits of purchasing an apartment.
The economy is changing and the RBA (Reserve Bank of Australia) has been attempting to curve rising inflation by raising interest rates. This has resulted in interest rates rising 5 times this year to take the official cash rate to 2.85%. These rate rises have affected many people’s borrowing capacity which has made a lot of people reassess how much they’re willing to spend to get their dream home. After covid, many people’s habits have changed and they no longer want to spend time inside, becoming keener to get back out there and enjoy life. However, this means that a disposable income is needed and with many people’s mortgages and inflation rising, in conjunction with the cost of living pressures that are mounting, many are reassessing their decision to deep dive into a high mortgage and assessing which is more important to them? living to pay off their house or living their life.
For first-home buyers, apartments, particularly off-the-plan apartments are a much safer option than a $1,000,000 mortgage. Firstly, this is because of the government grants and stamp duty incentives that are available. With many first-home buyers borrowing capacities being limited due to the lack of capital or equity most can only use their savings to leverage a deposit. Apartments are a great entry point for many to turn to plus if you purchase with the right developer you can find yourself living in a comfortable, luxurious, low-maintenance home. The unit market entry point is substantially lower than houses making it a great segway into the property market plus it has the added benefit of being less impacted by interest rate hikes. If you do your research and purchase with a trusted developer in a suburb with growth potential your little nest egg may even turn into the perfect investment! Did you know that despite some property prices falling, Oakleigh has seen a 6.2% price increase– knowing information like that can help you make a smart property purchase!
Investors have frequently turned to apartments as a great investment opportunity as they offer investors entry into highly desirable suburbs for a fraction of a house price. These suburbs are usually close to amenities, education and transport meaning they yield higher rental returns. And now with national unit rents up by 11.3% over a 12-month period, it’s the perfect time to be an investor. This is because the supply of apartments can not currently meet the demand, making it the perfect environment for investors and landlords.
So, if buying an apartment has been on your mind, now’s a great time to purchase. You can secure a great home at market low prices and not worry about mortgage repayments until the property has been completed. Currently, at Cornus, we are selling a large range of 1, 2 and 3 bedroom apartments in Glen Iris, Carnegie and Oakleigh. We also have 10 townhouses in Oakleigh. To register your interest fill in the form below or call sales on 1800 267 687.
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