Do One-Bedroom Apartments Make Good Investments?

Do one bedroom apartments make good investments?

The short answer is yes. The long answer is yes. So here is something in between.

You’re entering the apartment market with no real investment experience, and a lower budget that only allows you to purchase a one bedroom home - so what do you need to look out for in order to gain a good investment return?

Location

Be careful and particular when it comes to location. Whilst suburbs within a 10-15km radius of CBDs are generally considered home-runs, it isn’t always about what postcode you buy in. With a one-bedroom apartment, the building should be within walking distance to places of interest that relate to a younger generation. 

The younger generation, usually the ones renting one bedroom homes, want to be able to walk to shops, restaurants, bars and public transport. Additionally, you should avoid busy roads, and always aim to be in or around the best street in the area.

Style + Layout

Style and layout are one of the few things that are the most difficult to resonate with time. A cool, progressive building may look cool now, but will it hold up in 5 years time? Choose a building that fits with the landscape of the area, rather than being lured in by the extreme external facade that has been placed over the top. You want a property that has some security to the investment that will continuously (over years not months) provide a strong demand.

Additionally, the floor-plans will also justify the relevance in years gone by. A well designed apartment that relies less on hallways and more on smart design will flourish as apartments get smaller and smaller. Give your apartment a point of difference.

Amenities

Amenities vary, in both type and necessity, from building to building. Some buildings come with lap pools, gyms and theatres, whereas others rely on common spaces and outdoor areas. 

If you are purchasing in a large development, chances are the amenities will be more extravagant, as they will be cheaper to maintain as there are more residents. There is one amenity that is seemingly pivotal to most apartments, and that is a car space. Make sure your apartment has one, no matter what the public transport use of the potential tenant is.