The Perks of Investing Outside of the City
Despite the boom of apartment buildings in the center of Melbourne, I am not yet convinced to invest in one. I have been thinking about buying my own property for a few months now, and I have been putting a lot of thought into where I see myself living in the future. Although young people find living in the middle of it all very exciting, because they can easily go out to the bars and clubs, I am of a different opinion.
First of all, living in these new high-rise flats offer significantly less space. In Melbourne’s Inner city, a standard one bedroom has only 42 m2, and 52 m2 for 2 bedrooms. If you are considering having a family in the future like I do, this is simply too small. At the same time, children will not have as much space to run and play around. There are also health impacts of living in the city, where pollution tends to be worse than in the suburbs.
Another concern is the cost. There is a premium for living within a stone’s throw to offices and entertainment options. You do tend to save a bit of money on transport, but it does not make up for the big difference in pricing. After looking online at realty offices like http://www.chillirealty.com.au/, I became more convinced that I might get more value for my buck outside of the city.
After browsing through the properties offered by Chilli Realty, I decided to drop by and look at some of their offerings outside of the city center. They had a few apartments and townhouses available in the areas I was interested in, but I also wanted to get their advice on the best area to invest in. After all, I was not an expert in the market in Melbourne and I wanted an insider’s look at where the up-and-coming suburbs are. Not only is it important to buy where the value will most likely go up, but where it is great to live in as well. I definitely consider residing there myself instead of just renting it out.
In my opinion, these are the advantages of buying an apartment or townhouse out of the city:
More Space but Not Too Much
The apartments and townhouses in the suburbs already have much more space than the high-rise flats quite common in the center. They are also generally much cheaper as well when you consider the size versus the price of the property.
Buying an apartment instead of a house is much better for a single woman like me as well. Although it is tempting to buy a house with a garden just in case I have kids in the future, I was also not a fan of having to do much work taking care of plants and shrubs. Instead, a place with a balcony was the perfect property for me. I could still enjoy my weekends doing what I want instead of cleaning a huge home and clearing up the yard.
There have been reports coming around that these inner city high-rise buildings are not of great quality. Popular for investors coming from outside the country, growth has been tremendous. Most have also been attracted by the lower rates when they buy pre-construction, so some have fallen victim to substandard flats delivered in the end. Unless your realtor knows the developer or their finished projects well, be very careful buying without seeing the end product.
Some of the apartments or townhouses on the outskirts of the city might be a bit older, and not as modern as the high-rise ones, but having the chance to actually visit the place allows you to really see its real condition. As for me, going to view properties was a very good experience to also survey and have a better feel of the neighborhood.
Although houses will still go up in value, apartments might be better investment properties. Houses with gardens in the market are usually further out of the city, and reselling or renting them out might be more difficult than a flat or townhouse. They will be easier, cheaper and more attractive for tenants. Just in case I would not end up living there, I would always have the option of finding someone to let the place out.
In fact, some of the properties I ended up viewing were not even too far off from the city and are thriving neighborhoods with great transport options. Quieter and greener, they offer a great living experience without the high price tag and the busyness of the inner city. With the help of Chilli Realty, I was able to narrow down my options and find the perfect spot for me. I don’t need to search further just to find a reliable real estate service provider.