Is This The Right Time To Invest In Apartments?

Unlike ancient times, the modern world calls for ease and comfort. The grandiosity of luxury mansions and villas is overrated. It is the world of comfy, lavish apartments where convenience tags along. 

Despite the COVID outbreak spiking the demand for real estate and economic restraints, the golden chances of investing in apartments do not remain low. 

The uptick in the property values in real estate is the talk of the town. Several reports have recorded all-time high numbers. A hike in property rates means high-interest rates and low affordability. Nevertheless, consumer demand is intact. And thus, the situation is not bad for strategic investors. 

Despite the surge in overall property prices, there is a wide gap between houses and apartments. As the houses are out of reach, investing in units and apartments seems inviting more than ever now. 

Boosted Consumer Confidence

People are more likely to make bigger investments when they are financially stable and at ease. Approximately 26% of Australian families believe they are financially better off than in 2020 and 2021. As a result, consumer confidence has reached 35%, and they think it is the ‘good time to buy.’ 

Even when consumer confidence is good enough, houses are off-limits. They can easily make you financially crippled. However, apartments pose new property investment opportunities.

Economy 

The condition of a country’s economy impacts how the citizens engage with the property market. It’s the economy that decides if a person should invest, buy or sell. Since the COVID-19 outbreak, Australia’s economy has been beaten up until now. Its real estate market has marked surprising growth recently. 

The Australian Bureau of Statistics report states that the real estate value has risen to a whopping value of $9.9tn. The spur was caused by record-low interest rates and robust government stimulus. 

Right now, the affordability of residential real estate is low. With increasing price differences between houses and apartments, the former has become more unaffordable. That makes it the best time to invest in apartments.

Population Growth

Buying or renting a residential area becomes more demanding with the population growth. The household formation of a place dictates the investment demand. 

During the pandemic, most of the immigrants left for their homes. With the return of foreigners, the demand for residential properties has increased. Be it a rental or long-term plan. The World Bank reports a 1.3% annual change in population. Immigrant influx, cashed-up households, and low unemployment are likely to lift Australia’s real estate. 

However, until the next half of the year, the housing market can stay a little low. Thus, it’s the perfect time for investors to grab this golden chance for investing in apartments at an affordable price.

Employment Status

Investing in units and apartments requires paying millions of dollars for a high mortgage. If the people are low on credits, the investment is off the charts. Attractive interest rates and low EMIs are other important aspects to consider since they affect a customer’s eligibility. 

Thus, investment dreams are often crushed when the unemployment rates are sky-high. The decreased ability to invest results in low demand. 

In 2021, the seasonal jobless rate in Australia was the lowest at 4.2%. However, the sudden rise of the economy employed many people. This means a more stable population who would take an interest in investing. 

The investment journey and the profit factor are heavily dependent on the market. The market has a low demand for houses, majorly due to the rising “inner-city trend”. As a result, the apartments are all the rage right now. 

Government Policies 

Tax, home loans, ownership grants, depreciation, and recession are the driving aspects of the real-estate economy. High housing prices are a benefit to the government and the national economy. 

After suffering a dull economic impact in 2020 and 2021, the government is focused on driving national finance. That means bad news for home-buyers. However, this has opened a new door with thriving pockets of development —  investment in apartments. 

Supply Availability

The basic supply-demand plays a key role here. The investment property consultants advise waiting for a proper supply-to-demand ratio to ensure the best deals. 

Currently, several apartments are flooding the Australian rest estate market. Hence, the drop in the prices and the perfect opportunity for investors to put their money in for future wealth. 

In simpler terms, it’s the buyer’s market right now when it comes to apartments. The rising demand for cafe culture and leisure is all set to magnify the worth of apartments in the coming years. Thus, investing in such properties is the right approach. 

Final Thoughts 

In the investment scene, when one market dips, another rises. So it’s all about alertness and timing. 

Gone are the days when people’s priority was a backyard. What they want today is “walkability”. Neighborhoods with easy access to all the facilities within minutes and apartments sit in the lap of such surroundings.

Of course, the real demand for apartments is yet to be witnessed. But the revolution has begun. People have started to realize the importance of metropolitan and highly-developed urban areas, and there’s no backing off. 
With Quarter Acre’s property guidance and expert advice, you can easily find the ideal opportunity for investing in apartments. So, stay updated with the latest investment strategies with Quarter Acre and strike while the iron is hot!