Half of all new apartment buyers in Perth are owner-occupiers – a significant change when compared to the last decade.
One of the biggest changes in the Perth apartment market over recent years has been the growing acceptance of this style of living by owner-occupiers.
Today around half of all buyers of new apartments in Perth are owner-occupiers, while one in four are investors. A decade ago, more than 70 per cent of buyers of new apartment developments in Perth were investors. These developments were generally basic constructions designed to appeal to renters.
Today, new apartment developments in Perth have become more sophisticated in design and quality to appeal to the growing number of owner-occupiers that want to enjoy this low-maintenance lifestyle.
In particular, boutique apartment developments in Perth's city centre that are located around lifestyle features are becoming very popular with owner-occupiers. This is why more boutique apartment developments are being constructed in areas such as Burswood, Maylands and West Perth.
This new trend in the Perth apartment market is significant for investors because they have to focus on apartment developments that will appeal to owner-occupiers for resale purposes and future capital growth.
The design, quality and location of new apartment developments should appeal to owner-occupiers; investors who focus purely on rental returns could be making a big mistake.
Another important point is that many owner-occupiers of Perth apartments tend to rent in the area first. So whether you are renting or planning to sell the apartment at a later date, you are essentially focusing on the same demographic.
That is why it is very important to obtain independent advice when buying an apartment in Perth so you can make an informed decision.
The reality is that there are a large number of apartment developments in Perth now under construction and only those that can strongly appeal to the market will prove financially successful for investors.
Particularly when buying off-the-plan, investors need to carefully check developers' track records to determine if they can deliver a quality product.
It is an unfortunate fact that some investors buy off-the-plan based on images from glossy brochures, only to find a few years later that it is difficult to sell the apartments or find tenants because poor-quality materials used in the original construction have degraded the overall appearance of the development. All that is gold does not glitter!
Daniel McQuillan has held senior positions in the property and financial services sector for over a decade. During that time he has gained professional qualifications and a wealth of experience that has enabled him to personally build a very successful property portfolio based on a targeted plan. In 2011, he established Investwise so he could utilise these skills to help other people create wealth through similarly devising a personal investment model that best suited their personal circumstances. As a result of this targeted and personal approach to property investment, Investwise is now one of the fastest growing property investment advisory services in Western Australia.
Further information can be found at www.investwise.net.au.