Is apartment living the way of the future!
Around the 1980s increasing numbers of New Zealanders opted to live in inner-city apartments, either in new developments or conversions of old commercial buildings. This trend has grown to a buoyant apartment market in New Zealand.
While many people look towards apartment living for a change of lifestyle or because they wish to downsize, others are taking advantage of the outstanding investment opportunities apartments offer.
Urban dwellers cross the age spectrum. Young people buy for the lock up and leave lifestyle, baby boomers cut their ties with the lawnmower and enjoy the freedom of inner city living and older people enjoy the security. If predicted estimates eventuate, the current numbers of apartments could increase by another 50% within 2 years.
Apartment prices are also on the increase. A year ago you would be lucky to find an apartment with a million dollar price tag, but now you could spend more that on an average apartment.
People are also viewing apartments in a different light. Apartments seem to be replacing the old bach at the beach as people vote for more leisure time. It's not unusual to see sky high developments of new urban bachs growing out of the ground in all key holiday destinations around New Zealand. As more and more baby boomers decide to leave the suburbs and opt for apartment living it could push the prices up even further.
So, are apartments a good investment? You bet they are! Like all property investments you just need to research the market and make an informed buying decision.
Apartments are levied annually by the council based on a three yearly council valuation just like houses. There are body corp fees (your share of the total cost of running and maintaining the whole complex). If you buy an apartment on leasehold land there may also be an annual ground rent to pay. Whether you are an investor or nester you just need to factor in these costs and make sure the purchase is right for you.