Despite concerns there could be an oversupply of apartments in some areas of Perth, the long term outlook is positive due to changing demographics in our society. As the baby boomer generation reaches retirement age and looks at the option of downsizing, demand for apartments could increase significantly.
So why apartment living?
Retiring baby boomers tend to favour apartment living because of the low maintenance lifestyle on offer. Downsizing means less maintenance work around the home and more time to enjoy life, and after all, isn’t that what retirement is all about?
there’s also a desire by baby boomers to retire close to their current owner
occupier home which is also changing the future of apartment living in Perth.
Traditionally, apartment developments have been concentrated in the inner city areas because they were primarily built for investors, not owner occupiers. But, in recent years, with owner occupiers on the rise, there have been significant shifts resulting in developments popping up in outer suburbs from Mindarie to Rockingham.
A huge attraction for baby boomers is a financial one. They can sell their established property and move into their new apartment with surplus funds, which they can use for their retirement years.
make no mistake, while baby boomers are prepared to accept smaller living areas,
they won’t want to compromise on well-designed spaces and quality. This is
resulting in a new trend that’s seeing architecturally designed developments replacing
the standard apartment complexes typically built for investors.
Thinking of buying an apartment? With lots to choose from, it’s important that you take your time to find one that suits your needs, both short and long term. If you are buying with an investment hat on, we suggest you consider the baby boomer trend and ensure your apartment will appeal to this demographic.
We asked our CEO, Peter Peard for his tips on buying an apartment:
· Take your time. Don’t make decisions based on emotion. Currently, there is a large supply of apartments for sale throughout Perth and with plenty of choice you are also in a strong negotiating position with regard to the purchase price.
· Check how many apartments in the complex are owner occupiers. Owner occupiers tend to take a much more active interest in the upkeep of the complex. If more than 50% of the apartments are owned by owner occupiers then the complex should be well maintained.
· A balcony with an attractive outlook can enhance the resale value of the property. Apartments which have larger balconies or terraces are becoming more popular because of lifestyle factors.
· The views that the apartment can offer is important. If you are buying an apartment with good views, check that nothing in the future will interfere with these views i.e. the construction of a new building in front of your apartment.
· Check the internal living area of the apartment and ask the question, “is that calculated from the internal face of the wall or the external?” It may not sound like much, but if you calculate the lineal (in a direct line) metres of an apartment and times that by the thickness (of the wall), it can equate to a substantial amount of square metres that in fact is not living area.
· Parking is also very important when buying an apartment. Check that your apartment has a dedicated car bay and the ownership structure of car bays in the complex.
· If you are buying off the plan, check previous developments which have been undertaken by the builder and or developer to determine their ability to deliver what they are promising.
· A good tip to determine the quality of work when buying off the plan is to check with previous customers of the developer who are living in completed apartment developments.
· Always read the contract of sale document(s) before signing, and ensure you are aware of your obligations under the contractual terms.