Capital Growth for one bedroom apartment

[Tom_86]

Hi all, i'm looking at investing in a one bedroom unit in the western suburbs, ie. footscray/kingsville/west footscray. I am aiming for a unit with good capital growth and between $250-300,000. Is there a big difference in terms of capital growth when comparing a one bedroom apartment compared with a 2 bedder? I know it also depends on location and so forth also. Opinions?
Thanks in advance

 

[Luv2Travel]

I think as you said, depends on location and complex but for me personally in my complex, I bought a 1 bedroom about 18 months ago and it's seen about 23% growth. The 2 bedroom apartments from memory were around the low $500K's at the time and now sell for the mid $600K so I'd say a similar gain there also. If it's an area that has high demand for one bedroom such as where I am (lots of young professional couples and singles) then I personally don't see why it can't do well.

 

[mary&mat]

Hi Biggles,

Just wondering how many apartments in the complex you bought into?

Thanks

 

[Bigtone]

as long as the one bedder is over 50sqm they normally have same gains as 2+ bedders in same area, i think 1 bedders in the area u mentioned would have good long term prospects

 

[Tom_86]

Thanks for the advice, i understand 50 sq m tends to be the standard. How about an apartment between 45-50, is there much of a difference? i know many banks now will lend for those.

 

[artlez]

i know many banks now will lend for those.

But many banks also do not, in my experience. I think if you can, get yourself above 50sqm so as to not limit the amount of potential buyers you can get. A lot of people will stay away due to the fact it's under 50sqm. Either that or they may come in flocks and then find out that they will not be able to achieve finance (I was in this situation before!)