One bedders??

R

Ryan80

Due to limited equity I find myself looking at purchasing a one bedroom unit. I've always preferred 2 bedders but I guess there's still demand for one bedroom units within 10kms of a major city. In regards to growth would one bedders struggle compared to 2 bedroom apartments/units?

RyanG
 
Actually right now there is enormous demand for well designed 1 bedders close to city/transport. In the past they absolutely were the "poor cousin" but not anymore imo as affordability and being close to work, amenities and transport are prob more important atm than they ever have been in perth imo.


disclaimer - i myself am developing some 1 bedders in perth/highgate atm so i guess i could be biased but i do genuinely believe it

in 2006 or so when i bought a finbar east perth apartment OTP the 1 bedders were from 230k. in that same building now as well as other comparable ones you arent able to buy any for under 400k, ive seen up to 425 or so.

maylands 1 bedders could be bought for around 110k in 2005 or so, similar ones are now 200-230 in the same building
 
sanj said:
in 2006 or so when i bought a finbar east perth apartment OTP the 1 bedders were from 230k. in that same building now as well as other comparable ones you arent able to buy any for under 400k, ive seen up to 425 or so.

maylands 1 bedders could be bought for around 110k in 2005 or so, similar ones are now 200-230 in the same building
Click to expand...

To gauge a better comparison, what did 2 & 3 bedders sell for back then and what are they selling for today?
 
Rixter said:
To gauge a better comparison, what did 2 & 3 bedders sell for back then and what are they selling for today?
Click to expand...

2 bedders in that building started at 380k from memory, i bought one at a tick over 430k

theyre selling from 550-570k odd now

ultimately as i mentioned before the market is one evolving significantly now. for the first time ever we can genuinely point to perth having issues with traffic and congestion. also, prices are undoubtedly high Vs salaries compared to in the past and a lot of people are choosing to not stretch themselves too much and have a bit of a buffer.

in doing my research before deciding to build these 1 bedders i spoke to a lot of people who do live and buy in them close to the city, a good % of them said in the past they wouldnt have bought 1 bedders but now chose to do so as location and affordability is more important to them than size atm. with more and more households being single person households and with significant public transport upgrades a while away i do not see this demand for good 1 bedders dropping just yet.
 
From ABS http://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/916F96F929978825CA25773700169C65

"The proportion of one-person households increased from 15.7% of households in the 1976 Census to 24.4% in the 2006 Census.


Lone person households are projected to increase to 3.1 million (30.2% of all households) in 2026. This represents the fastest projected increase of all household types over the period 2001 to 2026. The ageing of the population coupled with the longer life expectancy of women over men, increases in separation and divorce, and the delay of marriage are some of the factors contributing to the growth in lone person households."


In the past 1 bed apartments were held back as they were often rubbish designs, in bad areas and there just wasnt much of a market for them. This is now no longer the case.
 
Rolf ive heard conflicting reports recently re what the size us based on. Internal only or including balcony etc, can u pls clarify? Ive also been told above 45sqm is easier than 40-45, is it true?
 
sanj said:
Rolf ive heard conflicting reports recently re what the size us based on. Internal only or including balcony etc, can u pls clarify? Ive also been told above 45sqm is easier than 40-45, is it true?
Click to expand...

it varies a little

to get the maximum spread 50 sqm living area , excluding balcony

ta
rolf
 
Anyone know as to how one bedders performed (statistically) in terms of CG in historically superior CG suburbs (close to CBD areas, summer hill, coogee etc) when compared to two bedders in the same suburb.

I would think that as long as living area is >50sqm and it's not one of the off-plan stuff, they will gain around the same growth % as 2 bedders in the same suburb? What would the rental yield comparison be as well between 2 bedders and 1 bedders in the same superior CG suburb?

I assume the frequency of rental turnover in one bedders will also be higher when compared to 2 bedders which means higher PM fees everytime the flat is vacant etc?
 
I'm guessing you're priced out of 2+ bedrooms in Perth, have you considered looking interstate? Perhaps you can pick up a 2 bedder in Brissie, or Adelaide? Or GWS :p
 
Ryan80 said:
Due to limited equity I find myself looking at purchasing a one bedroom unit. I've always preferred 2 bedders but I guess there's still demand for one bedroom units within 10kms of a major city. In regards to growth would one bedders struggle compared to 2 bedroom apartments/units?

RyanG
Click to expand...

I have been helping a friend purchase a 1 bedder, I tried to convince her that a 2 bedder would be far superior investment, but I think I am wrong.

THere is huge demand for 1 bedders and since we have been looking the prices just keep going up. RE agents confirming the same, I think people just want to be close to the city and this entry point is attractive.

I am also noticing that there are now lots of 2 bedders with only 1 bathroom, I would have thought this was a no no, not anymore, I feel I need to change my mindset.

http://www.realestate.com.au/property-apartment-wa-mount+hawthorn-113102823

http://www.realestate.com.au/property-apartment-wa-mount+lawley-113148563

I was told the Mt Lawley units got snapped up very quickly. I phoned the RE agent and once I found out they only had 1 bathroom I was not interested, plenty are very interested.

MTR
 
Ryan80 said:
Due to limited equity I find myself looking at purchasing a one bedroom unit. I've always preferred 2 bedders but I guess there's still demand for one bedroom units within 10kms of a major city. In regards to growth would one bedders struggle compared to 2 bedroom apartments/units?

RyanG
Click to expand...

As long the financing is not an issue, then we have found no major problems with 1 BR apartments (50% of my IP protfolio is 1BR)

My theory:
  • Cheaper rent than 2BR in equivalent location/condition - more affordable, potentially less vacancy in quiet times
  • Due to lower pricing, potentially easier to do an emergency sell. We were forced to test this theory - turned out a bit inconclusive..... We put on the market almost simultaneously 6 IP's (all inner city)
    • 2BR villa unit - passed in at auction sold later
    • 2BR apartment - passed in at auction (actually, NO ONE turned up to the auction! Hilarious....) sold later
    • 2BR apartment #2 - passed in at auction sold later
    • 1BR apartment - SOLD AT AUCTION
    • 4BR house - passed in at auction sold later
    • 2BR apartment #3 - SOLD PRIOR TO AUCTION (to tenants)


The Y-man
 
MTR said:
I have been helping a friend purchase a 1 bedder, I tried to convince her that a 2 bedder would be far superior investment, but I think I am wrong.

THere is huge demand for 1 bedders and since we have been looking the prices just keep going up. RE agents confirming the same, I think people just want to be close to the city and this entry point is attractive.

I am also noticing that there are now lots of 2 bedders with only 1 bathroom, I would have thought this was a no no, not anymore, I feel I need to change my mindset.

http://www.realestate.com.au/property-apartment-wa-mount+hawthorn-113102823

http://www.realestate.com.au/property-apartment-wa-mount+lawley-113148563

I was told the Mt Lawley units got snapped up very quickly. I phoned the RE agent and once I found out they only had 1 bathroom I was not interested, plenty are very interested.

MTR
Click to expand...

That 3rd ave development surprised everyone, 10k/m2 is more than i expected the market was willing to pay
 
sanj said:
That 3rd ave development surprised everyone, 10k/m2 is more than i expected the market was willing to pay
Click to expand...

Me too.
I think it is perhaps more about the location with these units.

Its not often you get the opportunity to buy new units in the Avenues. Also I think generally new units are on busy roads, some don't mind, but I would pick this location any day of the week.
 
MTR said:
I have been helping a friend purchase a 1 bedder, I tried to convince her that a 2 bedder would be far superior investment, but I think I am wrong.

THere is huge demand for 1 bedders and since we have been looking the prices just keep going up. RE agents confirming the same, I think people just want to be close to the city and this entry point is attractive.

I am also noticing that there are now lots of 2 bedders with only 1 bathroom, I would have thought this was a no no, not anymore, I feel I need to change my mindset.

http://www.realestate.com.au/property-apartment-wa-mount+hawthorn-113102823

http://www.realestate.com.au/property-apartment-wa-mount+lawley-113148563

I was told the Mt Lawley units got snapped up very quickly. I phoned the RE agent and once I found out they only had 1 bathroom I was not interested, plenty are very interested.

MTR
Click to expand...

Wow at those prices!

I want a fireplace now in my apartments :)

image2.jpg
 
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