ARWParticipant@arwJoin Date: 2003Post Count: 21
I’ve noticed a few people making negetive comments about investing in units/apartments within high rise complexes – can someone elaborate on this.
Came across a well priced ground level unit (with private courtyard) with city and river views in South Perth.
Can anyone advise on pitfalls of this type of investment (apart from fact it will be -ve geared)
Alana.hwd007Member@hwd007Join Date: 2002Post Count: 247
up to you but i hate em cause i think its a passing fad and a niche market and thus more riskyG-MAN007Member@g-man007Join Date: 2003Post Count: 37
The move to high rise living is due to changing demographics, lifestyle factors etc, I cant see a major shift in this trend as more and more of the population enjoys the cafe lifestyle, living close to where they work etc. Add to that more professionals to busy to mow the backyard and it starts to make sense to live in apartments. Look at New york as an example of where we are headed. If there is a large supply of apartments you need to factor in what makes yours unique, better etc. This is a major reason buildings designed by ‘brand name’ architects tend to sell at a premium.scottMember@scottJoin Date: 2003Post Count: 110
The main problam with hirise units is a lack of rental demand, due to an over supply of this type of accomodation!
There are more units being built and many more investors buying than tennants to lease these properties. So as a result they will be hard to lease and get lower than predicted returns. This causes thier capital growth to slow(against median trends), making them poor investments.
I can’t speak for Perth personally, but it may be similar to Melbourne and Brisbane both of which I can comment on! Developers have actually caused an imbalance in the demographics for CBD accomodation in these two areas so the figures don’t stack up anymore!
Melbourne has already seen huge depreciation, and brisbane is headed toward a similar senario, with many more developments about to start.
Thats why people bag hirise units on this site!
Hope this helps you,
“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonspider_2Member@spider_2Join Date: 2003Post Count: 79
Melbourne has about 5000 city high rise apartments on the market this year, Adelaide about 200. Don’t know the number in Perth, but know that South Perth with city and river views is a popular area. Does it have security/UCP? Good Luck with your decision.
[8D]ARWParticipant@arwJoin Date: 2003Post Count: 21
Thanks for the advice guys!!!
It is a secure complex in one of the best streets in South Perth with UCP – just one of the older complexes.
It is unique in that there are only very few complexes in South Perth that have ground floor apartments that have river/city views.
Perth is well behind Melbourne/Sydney in the apartment stakes, and still well behind in the price stakes too which is handy for us West Aussies (I’m actually a Melbournian originally but too expensive for me there at the moment!!!).
Already have 2 other investment properties and we have decided to take the plunge and diversify and give the apartment a go so here’s hoping!!!!
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