While Australians (mostly new Australians) are embracing apartment living these days more than ever, the fact remains they still are not a great investment.
1. Almost no land – it’s land that goes up in value
2. Ever rising body corporate – usually not factored in when citing yields
3. Less depreciation deduction than houses, especially f&f
4. Sinking fund costs grow and you have almost no control on how spent
5. Minimal control over your asset
6. You can’t add a granny flat for extra income
Getting the picture?
Brisbane and to a lesser degree for now, Gold Coast apartments are in glut. Melbourne has a big problem and Sydney has over done it again so watch out for some negative stories there over the next 2 years.
House and Land in key growth suburbs where future demand is secured – safe as houses!