Is the Great Australian Dream Over?
By | 5th Dec 17

Why older apartments are becoming popular

In Melbourne over the past few years, the house with the big backyard is only attainable for some and for those with a smaller budget; it might force them to move into a location further out than what they had anticipated. So is the great Australian Dream really over? We guess it depends on how you look at things. If property ownership is your great Aussie dream, then there are always opportunities to tick this box – it is all about how you look at the situation.

Older, larger apartments and their appeal

We are huge fans of art deco apartments. They are larger than the new apartments being developed recently and have features that can potentially curb your need for additional outdoor space or entertaining areas. It is also not just the size and height of ceilings that tend to be more generous, older 1920s and 1930S apartments tend to be built in smaller boutique blocks and on streets that are more residential. For those first home buyers wanting to get into the market but either don’t want to move out into the suburbs or can’t afford the house and land in the location they love, looking at an older apartment could be a genuine option. After all, gone are the days where we buy that one family home and live in it forever.

So where can I find these types of apartments?

More often than not, they are located at the fringe, or 10km from the CBD, in the eastern, south or bayside areas of Melbourne. There are some pockets in the northern areas of Melbourne and very few in the western pockets. Suburbs like Hawthorn, St Kilda East and Elsternwick are hot spots for these kinds of apartments.

I thought buying apartments are a great investment.

We always advise our clients to do their due diligence when purchase property for investment or to live in. What are your financial goals? How are you funding your investment and at what part of the cycle are you purchasing in? All these questions are imperative no matter what kind of investment you make in property. We have seen opportunity for capital growth and rental return for these larger older apartments because of the size, the quality of the build, it’s architectural features and also because they are in short supply. It really comes down to when and how much you purchase property for, versus the perceived value within the market cycle.

Briefly, it really depends on your individual situation when it comes to making a property purchase. We have seen art deco apartments appreciate in value because of the unique attributes they hold in comparison to the newer apartment blocks being developed. If you can’t compromise on location but have a set budget, looking to buy in one of these boutique blocks could really be a great start for your own kind of great Australian Dream.

If you would like more detailed advice about purchasing, our Buyer’s Agents are always here to help you. Get in touch with us for your free consultation today and make 2018 the best year by starting your planning now: