HTW warns first home buyers inner Melbourne apartments are not a wise investment
The most popular property options available within the Melbourne CBD and inner city for first home buyers are apartments, according to HTW’s Month in Review: March 2017.
But the valuation firm says the expected oversupply of city apartments and lack of capital growth can mean "they are not a wise long term investment."
“Apartments can appeal to disenchanted first home buyers who can’t afford an inner city dwelling but want the inner city lifestyle,” the report says.
“Inner city apartments can be desirable to young home owners as location means minimal travelling to work or social events and they often have common facilities such as gymnasiums, pools and saunas which are an incentive for lifestyle.”
The First Home Owners Grant of $10,000 offered by the Victorian government make off the plan apartment purchases appealing to first home buyers, HTW suggests.
“In the Melbourne CBD, $500,000 can get you a two bedroom, one bathroom apartment with a basement car space which would appear to be an affordable purchase point for most first home buyers,” it says.
A one bedroom apartment at 1805/27 Little Collins Street, Melbourne (above) has been listed for between $390,000 to $410,000.
Similarly a two bedroom apartment at 2006/280 Spencer Street, Melbourne (below) has been listed for $550,000.
