Hi All
This a subject I’ve been pondering for a while.
An increasing demographic in the future will be people living alone, and conventional 2/3 bedroom housing doesn’t quite suit the need.
Will high density housing comprising studio style accomodation be in great demand soon? I’m thinking of fairly low rise blocks, self contained units with more sophisticated “common rooms” than currently the norm – inernet lounges, function/common rooms
Would you invest in that sort of property?
Regards
Swampy30
Interesting idea.
The question might come down to “Who will lend money to me to buy one of these?”
Aren’t banks not too keen to lend when the square meterage gets under say 50sqm?I think the more fundamental question is why is it difficult to get someone to lend against a <50sqm property?
I think the answer lies in the old saying: “location, location, location”
Little dogbox accomodation fails to afford any unique qualities. They depreciate over time and at the same time new doxboxes are built that are exactly the same or better (as they are newer).I think when it comes to investing in these types of units it’s all about cashflow. As it stands in Melbourne this type of coffin-like accomodation presents little or no real cashflow positive opportunity. Every few years a new tower goes up and all the existing ones suffer from no growth.
Further out in the suburbs I think there will still be demand for multi-bedroom dwellings. In lifestyle locations I could see a demand for smaller, easier to maintain units with good location could become more popular.
I think the problem, from an investment point of view, is that without a uniqueness about it a property wont grow in capital value which is where the real money comes from.
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