Do Apartments Appreciate In Value?
An earlier notion regarding Australian real estate assumed that houses increased in value at a better rate than apartments. It couldn’t be far from the truth! Today, the situation is different and a number of apartments appreciate in value compared to their contemporary home segments.
What Type Of Apartments Gain Value In Sydney?
Before buying first home as an investment, many Aussies think that it is important to buy an independent house. An independent house is built over land, which grows in value.
However, the analogy may not always be true. That’s because relatively small independent houses in the suburbs (with a lot of disadvantages) may have very few buyers interested in them.
On the other hand, an apartment available for a similar price may interest many buyers. Over time, the value of an apartment will continue to increase, but the same will not happen with the house.
Factors To Consider Before Buying Your First Home
Jitters are common when thinking of buying your first home in Sydney or any other part of Australia. However, if you have planned your investments well, then things can come pretty easy for you.
So the first thing that you need to do before looking for the best place to buy your first home is preparing a list of parameters. Here’s a sample list, and you can add more items to it based on your preference:
- Uninterrupted availability of amenities.
- Proximity to schools, hospitals, shopping malls, etc.
- Sports grounds and pools.
- Population density of the area.
- Distance from airport or bus terminals.
- Connectivity to important cities.
Apart from the factors mentioned above, there can be plenty more but since buying a home is a highly personal choice, the parameter type also varies greatly from buyer to buyer.
Once you have jotted down all the things you expect from a place you will call home, you can move and start planning on the investment part. However, before deciding on investing in a real estate property, it is again necessary to evaluate how the property is going to fare in the coming years. The reason is simple, we all want to own an asset whose value increases with time. So, let us understand the factors that affect the price of an apartment with the passage of time.
How To Plan To Buy Your First Home?
We earlier spoke about how some apartments may actually appreciate in value. Let us look at the factors that lead to the uptick.
1. Location Of The Property
Location plays a huge role in the pricing of a property. People are willing to pay more for a property located in an urban area with all the modern facilities nearby.
2. Proximity To Important Places
The apartment space may or may not be big enough. But if it is strategically located in an area of interest, then its value is expected to surge with time. Say, after a new Starbucks opens next to it.
Or, if there’s an enormous commercial complex being launched near the apartment, that may become the workplace of most apartment dwellers, it’s a win-win situation for apartment owners!
3. Urbanization
ome suburbs are witnessing urbanization at a great rate. If your selected apartment is located in those areas, you can expect a rise in the prices in the coming years.
4. Build Quality
It is not a hidden fact that apartments with better build quality and design will attract more buyers, and it will eventually lead to appreciation in their prices.
Conclusion
Buyers looking for the best suburbs to buy their first home in Sydney have a plethora of options, and only thorough planning by considering all the mentioned parameters will lead to a wise decision.
You must have gotten a clear picture from this article regarding buying your first home, and you can always look for guides to buying your first home to eradicate any ambiguity from your planning.
