Should you buy a studio apartment?  It may have a smaller price tag, but is it a wise investment choice?  There’s been a lot of stigma attached to this end of the market over time.  Yes, they’re cosy, but are they livable?  Yes, they’re affordable now, but what about the resale value?  It’s easy to see why potential homebuyers might be a bit gun shy when it comes to owning such a tiny, open-planned layout.

But once again, that old thing called COVID has caused a bit of stir.  Over the last couple of years, it’s forced people to reconsider just how much space they really need to live.  On top of that, the current property boom has squeezed first homebuyers and smaller investors out of the market.  So, a studio certainly seems like an attractive option.

Yet are they worth your time and money?

That all seems to depend quite heavily on who’s buying and where it’s located.  Young professionals and international students are snapping up studios in places like Newcastle.  It’s got a university and offers both a thriving city and a sea change for those looking for affordable accommodation.

South Melbourne is generating a lot of interest for similar reasons.  Plus, it has good public transport and other amenities, and offers convenience to its surroundings.

There are, of course, the more high-end apartments that end up costing what you might pay for a half-decent three-bedroom house.  One example is Clarence Street, Sydney, which currently presents a guide price of $900 – 950k.

So, the short of it is – it all depends on your long term goals.  In the short term, you get high rental yields.  But you don’t get much in the way of capital growth.  Plus, some snooty banks don’t even like lending for studios.

If you’re thinking long-term, perhaps an alternative option is on the cards.  That’s where we come in.  We not only help you get into the market, we get that mortgage paid off sooner too.  It’s definitely more than just talk!  Come and ask us how.