Non-economic property of Households non-financial assets make up more than 70 percentage of all property. Most of them are tied up in real property. Records data suggests, yhat real estate property. In certain, Accounted for around 68 percent of households’ non-economic property final 12 months. That’s down close to 2 percent aspects from a 12 months previous.
Experts say, in contrast to in the past when property prices continued rising, real estate may not be a moneymaking funding outlet. They warning, that an asset constitution that leans too heavily on property could have a devastating have an impact on on loved ones price range must prices go down. They endorse individuals promote a few of their real estate to increase monetary liquidity for a stable supply of revenue for the years after retirement.
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So I’ve always said that, if you think about it in terms of the content. We’ve got to get the strategy right first, we’re going to get the location right second and then we’ve got to get the property third. The quite often, I’ve discuss often about the fact that people get that the other way around that a property. First suburb, second maybe strategy later but if I’m sort of identified a suburb that’s investment-grade that I should identify and I don’t have a budget to buy a townhouse or a house or maybe not even be able to afford a two-bedroom apartment my invitation to the investor is to consider buying a one-bedroom apartment because not only do they make for a great investment. If you get the right one; you’re obviously buying into an increasing trend with household types in this country. So what are the advantages of buying a one-bedroom apartment.
Households non-financial assets
The first one is really obvious. It’s affordable to buy in a great suburb a one-bedroom apartment clearly you’re going to save a lot of money than if you buy a two-bedroom or townhouse or a house so that’s a clear advantage of buying a one-bedroom apartment. The other one is you can get into a better area. So assume that you’re buying a one-bedroom apartment. Let’s call it $400,000 in a good area and you may go 50 ks out to buy a three-bedroom house the difference is quite dramatic in terms of those locations. So you are buying into a much better area and as we know location will do 80% of the heavy lifting. Now as opposed to, two-bedroom apartments. There’s reduced strata fees because you get a smaller entitlement contribution entitlement within the body corporate.
There’s a bigger deposit usually the banks only like to lend up to 80 percent. They usually get uncomfortable above 80 percent. So you need to be sure that you do have that extra deposit and the other thing is that, if you have less quite often 50 square metres. The benchmark for the banks to feel comfortable and a lot of one-bedroom apartments are less than 50 square meters. So that actually does have an impact on lending so I would suggest to someone who is investing in a one-bedroom apartment that they would make sure that they stay above 50 square metres.
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You’ve got a friend coming over do you actually want them to go through your bedroom to go to the toilet or would you prefer the toilet to be separate do you want a little bit of a hallway. If you can these are the sorts of things separate all of the little hallway. It will help increase the size which will get you over that, fifty square meter size. The banks definitely definitely love and then the last thing for me to think about is some outdoor space.